Direxion Daily MU Bull 2X Shares (MUU), a leveraged ETF designed to deliver twice the daily performance of Micron Technology, surged 9.02% in the latest trading session, reflecting a sharp uptick in sentiment across the memory chip sector.

The rally was driven by heightened investor enthusiasm for the DRAM market, as a detailed valuation analysis of Chinese memory maker CXMT used Micron's DRAM business as a key benchmark, underscoring the persistent global supply-demand gap and robust earnings growth potential for memory manufacturers. Additionally, Nomura initiated coverage on CXMT with a target price implying a market cap on par with Micron's, further highlighting the strong pricing environment. Reports of Korean memory giants inking massive long-term supply deals also reinforced the view that the memory upcycle has further room to run, lifting Micron's stock and, in turn, the leveraged MUU ETF.

The combination of structural demand drivers, including AI server expansion and domestic substitution trends, has created a favorable backdrop for DRAM prices, benefiting leading producers like Micron and amplifying gains in leveraged products such as MUU.