GraniteShares leveraged ETF falls 12% as Nvidia sheds $279 billion in market value
The GraniteShares 2x Long NVDA Daily ETF dropped sharply on Friday, reflecting a 6.2% decline in Nvidia that erased nearly $280 billion. Broader macro pressures and customer concentration fears compounded the move.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) fell 12 per cent on Friday, June 5, 2026, closing at $95.91 after opening near $109.45. The fund’s decline mirrored a 6.2 per cent drop in its underlying asset, Nvidia (NVDA), which fell from $218.66 to $205.10. This movement erased approximately $279 billion in market capitalisation, marking the largest single-day dollar loss for the chip sector in 2026.
The downturn was precipitated by two converging factors. First, Broadcom missed its third-quarter AI semiconductor revenue guidance, forecasting $16.0 billion against expectations of $17.2 billion. Broadcom CEO Hock Tan also indicated that Google may utilise multiple chip suppliers, raising immediate concerns regarding Nvidia’s customer concentration. Second, stronger-than-expected US nonfarm payrolls data for May, which came in at 172,000 against an estimate of 80,000, revived interest rate hike fears.
The robust employment figures compressed Treasury yields, with the 10-year to 2-year spread falling to 0.38 per cent, the lowest level in twelve months. The 2-year Treasury yield jumped to 4.16 per cent. This flattening curve placed pressure on high-multiple growth stocks, with Nvidia trading at a trailing price-to-earnings ratio of 31 and a forward ratio of 23.
Retail sentiment on WallStreetBets dropped to a score of 32 by 9 PM Friday, reflecting frustration over leveraged ETF losses. One post gained 15,729 upvotes as investors reacted to the volatility. Despite the sharp correction, Nvidia’s fundamental outlook remains strong, with first-quarter FY27 revenue up 85 per cent year-on-year and a second-quarter guidance of $91.0 billion.
Analyst consensus remains at a $298 price target with 48 buys and one sell, contrasting with the deteriorating market tape. Prediction markets currently assign a 76.5 per cent probability that NVDA closes above $190 in June and a 54.5 per cent probability it closes above $200. The daily reset mechanism of NVDL means that while it delivered on the prospectus during the sharp decline, prolonged sideways trading could erode value for holders.
