2x leveraged semiconductor ETF drops 17% on AI growth concerns and strong jobs data

The ProShares Ultra Semiconductors ETF, which aims to deliver twice the daily return of the semiconductor index, fell about 17% on June 5, 2026, after Broadcom's cautious Q3 AI revenue guidance and a stronger-than-expected jobs report triggered a selloff. Broadcom's forecast missed buy-side expectations, raising concerns about the pace of AI semiconductor growth, while the strong payroll data revived rate hike fears, hitting long-duration tech stocks hard. Despite the sharp drop, the leveraged ETF remains up significantly year-to-date due to its daily reset mechanism benefiting from a smooth uptrend earlier. Investors should watch upcoming earnings from Micron and TSMC's monthly revenue to gauge if AI-driven semiconductor demand will continue growing or if the recent selloff signals a deeper shift.