Direxion Launches Leveraged AMD ETFs Targeting AI Investment Opportunities

Direxion has introduced leveraged and inverse exchange-traded funds focused specifically on Advanced Micro Devices (AMD), offering traders enhanced exposure to the semiconductor company's performance in the artificial intelligence sector. The Daily AMD Bull 2X Shares (NASDAQ: AMUU) and Daily AMD Bear 1X Shares (NASDAQ: AMDD) provide 200% daily leveraged exposure and 100% inverse exposure respectively, targeting investors seeking to capitalize on AMD's short-term price movements.

AMD's recent financial performance underscores the potential appeal of these specialized ETFs. For the first quarter of 2025, AMD reported global revenue of $7.4 billion, representing a 36% year-over-year increase. The company's data center business segment contributed $3.7 billion to total revenue, growing by 57% year-over-year, driven primarily by increased sales of AMD EPYC CPUs and AMD Instinct GPUs. This growth trajectory positions AMD as a significant player in the expanding AI infrastructure market.

The company's strategic acquisition of ZT Systems, a leading supplier of AI and general-purpose computing infrastructure for major hyperscale providers, further strengthens its position in the AI ecosystem. This acquisition enables AMD to develop comprehensive AI solutions that combine CPU, GPU and networking silicon with open-source AMD ROCm software and rack-scale system capabilities. The integration is expected to accelerate deployment of AMD-powered AI infrastructure optimized for cloud environments at scale.

Unlike traditional ETFs or even other leveraged and inverse ETFs that track indices, Direxion's single-stock ETFs track the price of AMD specifically, eliminating diversification benefits. These funds pursue daily leveraged investment objectives, making them riskier than non-leveraged alternatives. They are designed to achieve their stated objectives on a daily basis and should not be expected to track AMD's performance over periods longer than one day. The funds will lose money if AMD's performance remains flat, and under certain conditions, the bull fund could lose money even if AMD increases in value, while the bear fund could lose money even if AMD decreases in value over periods exceeding a single day.

Investing in these funds involves a high degree of risk and is not equivalent to investing directly in AMD. They are suitable only for investors who understand leverage risk and actively manage their investments. The products are intended for short-term trading strategies rather than long-term investment holding periods. While the amplified or inverse exposure can lead to significant gains, it also carries the potential for substantial losses, particularly for investors who fail to monitor their positions actively.

The introduction of these specialized ETFs comes as investor interest in AI-related companies continues to grow. AMD's positioning in the AI infrastructure market, combined with its recent acquisition strategy and strong financial performance, makes it an attractive target for traders seeking exposure to the AI sector. However, prospective investors should conduct thorough research and understand the unique risks associated with leveraged and inverse single-stock ETFs before considering these products. Additional information about these investment vehicles can be found at https://www.direxion.com.