Direxion Launches AMD Single Stock Leveraged and Inverse ETFs for Active Traders

Direxion, a leading provider of tradeable ETFs, announced the launch of two new Single Stock Leveraged and Inverse ETFs focused on Advanced Micro Devices, Inc. (AMD). The Direxion Daily AMD Bull 2X Shares (Ticker: AMUU) provides magnified exposure to AMD's daily performance, while the Direxion Daily AMD Bear 1X Shares (Ticker: AMDD) offers inverse exposure. These products are designed for active traders seeking to express short-term convictions on AMD, a major player in the expanding artificial intelligence and data center markets.

According to Direxion CEO Douglas Yones, "AMD has a wealth of digital semiconductor expertise and is well-positioned to prosper from continued favorable trends in both artificial intelligence and data centers." The company emphasized that these ETFs are built specifically for active traders with high-risk tolerance and are not suitable as buy-and-hold investments. Unlike traditional ETFs or even other leveraged ETFs, these single-stock ETFs track the price of AMD specifically, eliminating diversification benefits and concentrating risk.

The announcement carries significant implications for market participants, as it provides new tools for traders to capitalize on AMD's volatility amid the rapidly evolving semiconductor and AI industries. However, Direxion stresses that these products involve substantial risks, including the possibility of losing the entire investment in a single day. Investors should carefully consider the funds' objectives and risks, which are detailed in the Direxion Leveraged and Inverse ETF Education Center where educational materials help determine if these products are appropriate.

These ETFs face multiple risks including leverage risk, daily correlation risk, and specific risks associated with AMD and the semiconductor industry. The funds may lose money even if AMD's performance moves in the expected direction over periods longer than one day due to the effects of compounding and daily rebalancing. The semiconductor industry faces intense competition, economic uncertainty, and technological risks, while AMD specifically contends with market concentration, geopolitical events, and intellectual property protection challenges.