AI Acceleration or Overheating? AMD’s Bull Run Faces Its Test

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Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AMD.

Shares of Advanced Micro Devices, Inc. (Ticker: AMD) ripped to new all-time highs after reports surfaced of a deal with OpenAI—cementing AMD’s growing footprint in the red-hot AI hardware arms race. The stock’s climb from its April lows has been relentless, but traders now face a key question: can AMD keep the wave alive into year-end, or is it starting to crest?

AI Chip Dominance and the Data Center Boom

AMD has firmly established itself as a powerhouse in high-performance computing, from CPUs to AI accelerators and edge solutions. Its portfolio, which in includes EPYC server processors, Instinct AI GPUs, and Ryzen chips, powers data centers, cloud infrastructure, and gaming rigs alike, offering flexibility across performance, efficiency, and scalability.

The company’s strength lies in its chiplet-based architecture, close ties with hyperscalers, and expanding AI inference capabilities through its ROCm open software stack. AMD’s Instinct MI300 series GPUs have put it in direct contention with Nvidia in the AI data-center race, and recent design wins with Microsoft Azure, Meta, Oracle, and Amazon reinforce its competitive position.

It’s also broadening its reach into automotive AI and embedded systems, targeting next-gen workloads across industries. AMD’s balance sheet remains strong, supporting aggressive R&D spend and sustained innovation.

For traders expecting AMD’s momentum to continue, Direxion’s Daily AMD Bull 2X Shares (Ticker: AMUU) seek daily investment results, before fees and expenses, of 200% of the performance of Advanced Micro Devices, Inc. common stock (Ticker: AMD).

Below is a daily chart of AMD as of October 30, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

AI Hype Burnout?

Even market favorites can overheat. AMD faced a very high bar this quarter, especially as NVIDIA’s CUDA ecosystem remains deeply entrenched across developers and enterprises.

On November 4, 2025, AMD reported record revenue of $9.2 billion (up ~36% YoY) and adjusted EPS of $1.20, beating estimates. Yet despite the beat, the stock slid ~3–4% after hours, suggesting investors were less enthused about the forward outlook.

The report revealed that while the data-center segment rose ~22% to $4.3 billion, growth is still modest compared to sky-high expectations, and the embedded segment declined ~8%. Meanwhile, commentary pointed to cautious pacing of AI capex and the need for next-gen products to scale (MI450/MI400 series) before the company can close the gap on Nvidia.

For traders, the message is clear: strong numbers don’t eliminate the risk of a pullback. If you want to prepare for AMD’s next catalysts to disappoint (slower data-center ramp, weaker guide, or competitive/inventory issues) Direxion’s Daily AMD Bear 1X Shares (Ticker: AMDD) offer a tactical way to position for near-term downside. AMDD seeks daily performance, before fees and expenses, of 100% of the inverse (or opposite) of the performance of Advanced Micro Devices, Inc. common stock (Ticker: AMD).

Whether bulls believe the wave still has room to run or bears see exhaustion on the horizon, AMUU and AMDD offer leveraged tools to play either side of the next big move in AI chips.

* Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with AMD and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with AMD and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to AMD is impacted by AMD’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to AMD at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to AMD increases on days when AMD is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with AMD and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to AMD is impacted by AMD’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to AMD at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to AMD increases on days when AMD is volatile near the close of the trading day.

Advanced Micro Devices, Inc. Investing Risk – AMD faces risks associated with: the highly-competitive nature of the semi-conductor industry, which includes large dominant participants; economic and market uncertainty; reductions in demand for its products; potential concentration of revenues in a few large clients; geopolitical events and pandemics; adequate protection of technology or other intellectual property; exchange rates; among other risks.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily AMD Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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