SMH vs SOXX vs SOXL: AI Chip ETF Rally Hits Its Hardest Test Yet
Semiconductor ETFs took a steep dive on Tuesday. The leveraged Direxion Daily Semiconductor Bull 3X Shares plunged nearly 12.4% just before 11 a.m. in New York—a sharp swing for a fund that’s been one of 2026’s most popular AI hardware bets. Losses rippled across the sector: VanEck Semiconductor ETF fell around 3.5%, iShares Semiconductor ETF slipped 4.1%, and First Trust Nasdaq Semiconductor ETF dropped close to 4.5%.