Direxion Daily MU Bull 2X Shares (MUU), a leveraged exchange-traded fund tracking Micron Technology Inc., soared 15.36% during intraday trading on Thursday.
The sharp rise was driven by renewed institutional optimism for the memory sector. Bank of America reaffirmed its Buy rating on the underlying stock, Micron Technology, with a $1,550 price target, characterizing the sector's recent pullback as a healthy correction. The report highlighted that memory chips are currently trading at only 10x earnings, which it deemed severely undervalued.
Concurrently, industry analyst TrendForce projected server DRAM contract prices to increase by 13-18% quarter-over-quarter in the third quarter, citing a persistent supply-demand imbalance and a confirmed supply shortfall expected in 2027. This fundamental supply constraint supports higher pricing and revenue prospects for memory manufacturers like Micron. The ETF's 2x leverage amplified the positive move during the sector rebound.