Direxion Daily MU Bull 2X Shares (MUU), a leveraged exchange-traded fund designed to deliver twice the daily performance of Micron Technology Inc., plummeted 8.38% during intraday trading on Thursday.

The sharp decline in the leveraged ETF comes as its underlying asset, Micron Technology, experiences heightened volatility following a massive rally. Analysis indicates that despite Micron's attractive growth prospects driven by AI-driven demand for memory chips, its stock has surged approximately 720% over the past 12 months, prompting discussions about valuation and potential profit-taking activity.

Recent reports highlighted Micron's price-to-earnings ratio of approximately 9.9, which is significantly below the semiconductor industry median, even as the company projects high earnings per share growth. This valuation disconnect, coupled with the stock's recent volatility—including an earlier decline before a recovery—likely contributed to the amplified downward movement in the leveraged bull ETF during the session.