SMCX dropped to $23.22 after Broadcom and SMCI earnings misses triggered a sector-wide selloff in AI-related stocks.
The Defiance Daily Target 2X Long SMCI ETF (SMCX) fell 22% on June 5, 2026, closing at $23.22 after opening near $29.95. The decline mirrored a 11% drop in its underlying stock, Super Micro Computer (SMCI), which slid from $46.90 to $41.64.
The selloff followed Broadcom’s Q3 AI revenue miss, which fell 7% below consensus, and SMCI’s 18% revenue shortfall. Broadcom CEO Hock Tan suggested Google may diversify chip suppliers, pressuring AVGO shares by 13-15% and sparking broader sector weakness.
Year-to-date, SMCX has collapsed 67% from its $69.42 entry point, while SMCI remains up 2% over the same period. The gap highlights the risks of leveraged single-stock ETFs amid volatile AI market shifts.