Direxion Daily Semiconductor Bull 3X Shares is trading 14.2% down today, as a disappointing revenue forecast from AI chipmaker Broadcom (AVGO) sparks a broad sell-off across the semiconductor sector, leading to profit-taking after a historic AI-driven rally.
- Broadcom shares tumbled nearly 14% after its second-quarter revenue and AI chip outlook missed Wall Street's high expectations, raising concerns about the sustainability of the recent AI demand surge. [18, 21]
- The negative sentiment from Broadcom is weighing on the entire tech sector, with Nasdaq futures down over 1% as investors lock in profits from the recent multi-week rally. [8, 13]
- The pullback is amplified in the 3x leveraged SOXL fund, which had seen massive gains year-to-date on the back of AI optimism. [17]