Direxion Daily MU Bull 2X Shares (MUU) surged 15.61% during intraday trading on Tuesday, significantly outperforming the broader market. The leveraged exchange-traded fund, which aims to deliver twice the daily performance of its underlying stock Micron Technology, experienced amplified gains as the memory chip sector staged a strong recovery.

The rally follows a period of sharp selling pressure triggered by regulatory changes in South Korea, where the Financial Services Commission tightened rules on single-stock leveraged ETFs. Market sentiment turned positive as SK Group Chairman Chey Tae-won publicly forecasted that AI chip demand could surge 60% to 100% next year, with overall memory demand growing 50% to 60%. He noted that supply-side capacity expansion remains limited, suggesting a widening supply-demand gap that benefits memory manufacturers.

Further supporting the sector, foreign investors have been increasing their holdings in memory chip stocks, with record-high semiconductor export data from South Korea providing fundamental support. Additionally, Middle Eastern sovereign AI investment entities have begun negotiations with Korean memory manufacturers on medium-to-long term procurement plans, while analysts from firms like KeyBanc maintain bullish outlooks on memory pricing and supply tightness extending through 2028. The 2x leveraged structure of the Direxion Daily MU Bull 2X Shares ETF mechanically amplified the rebound in its underlying assets.