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Direxion's Leveraged & Inverse AMD ETFs Offer AI-Related Opportunities

By Kyle Anthony, Benzinga

For the first quarter of 2025, AMD’s global revenue was $7.4 billion, a 36% increase year-over-year. The data center business segment contributed $3.7 billion to the company’s total revenue and grew by 57% year-over-year, driven by growth in AMD EPYC™ CPU and AMD Instinct™ GPU sales.

From a corporate development perspective, AMD has recently completed the acquisition of ZT Systems, a leading supplier of AI and general-purpose computing infrastructure for major hyperscale providers worldwide. This acquisition will enable the development of a new generation of comprehensive AI solutions that combine AMD CPU, GPU and networking silicon, open-source AMD ROCm™ software and rack-scale system capabilities. It will also accelerate the deployment of AMD-powered AI infrastructure at scale, optimized for cloud environments.

Gaining Comprehensive Exposure To AMD With Direxion

For short-term, risk-loving traders looking to gain comprehensive exposure to AMD, Direxion’s Daily AMD Bull 2X (NASDAQ: AMUU) and Bear 1X Shares (NASDAQ: AMDD) offer enhanced, pure-play exposure to AMD. These leveraged and inverse ETFs are designed to track the daily performance of the company's common shares, enabling investors to track the stock’s movements with exposure of 200% for the bull fund or 100% of the inverse for the bear fund. It is important to note that these solutions are intended to take advantage of short-term trends and should not be held for more than a day.

Whether bullish or bearish on AMD, these ETFs can help traders attempt to engage with the firm’s growth patterns. However, it's crucial to approach these leveraged and inverse products with a clear understanding of their risks. While the amplified or inverse exposure can translate to significant gains, it can also lead to substantial losses. These ETFs are best suited for those who can actively manage the inherent risks of leverage and inverse and are looking to attempt to capitalize on short-term trends occurring with the firm. Be sure to conduct thorough research before you answer the siren call of magnified profits!

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This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

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