Shares of semiconductor giant Advanced Micro Devices (AMD) have more than doubled this year. The stock, one of the bellwethers in the artificial intelligence (AI) semiconductor space, traded higher last week following the company’s Advance AI event.
While that event is in the rearview mirror, it confirmed that agile traders may have plenty of opportunity to make use of the Direxion Daily AMD Bull 2X Shares (AMUU) during the back half of 2026. AMUU is designed to deliver 200% of the daily returns of the semiconductor stock.
The leveraged Direxion ETF may be one for aggressive traders to monitor into year-end because the sell-side is increasingly constructive on AMD following the Advance AI event. The stock hovered around $523 late on Friday, July 24, well below the price targets set by some analysts. Following the event, Roth Capital lifted its price target on AMD to $650. Meanwhile, UBS boosted its price objective on the chip stock to $730. Split the difference and call it $690, and AMD and AMUU could offer significant upside potential going forward.
On the extremely bullish side of the ledger, Baird placed a $1,250 price target on AMD, citing the AI muscle flexed by the company at the Advance AI confab. That implies the stock can more than double from current levels. If that outlook is anywhere close to accurate, AMUU could be a rewarding play for short-term traders at various points in the coming months.
Catalysts Abound for AMD, AMUU
Drilling down on some takeaways from the Advance AI event, solid fundamentals support AMD’s upside potential, and thus that of the geared AMUU.
“The highlight for us was AMD boosting its server CPU TAM to $220 billion, which is comparable to the $200 billion TAM provided by Nvidia in recent weeks. This is up from AMD’s March forecast of $120 billion and our prior estimates for the AI market,” noted Morningstar analyst Brian Colello.
For traders considering AMUU, another potential positive is the lack of evidence of material lethargy when it comes to demand for AI compute.
“We’re also pleased, but less stunned, that AMD lifted its 2030 AI TAM for the entire AI accelerator market (including GPUs and related memory, CPUs, and networking) to $1.4 trillion, up from $1.0 trillion announced in November. In short, there’s no slowdown in AI compute demand,” added Colello.
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