Direxion Daily MU Bull 2X Shares (MUU), a leveraged ETF tracking Micron Technology, surged 5.01% in pre-market trading on Tuesday.

The rally follows Micron's significant gains, driven by multiple factors including strong performance from Asian memory giant SK Hynix, which boosted market sentiment, and forecasts of substantial capital expenditure from major US tech giants. Additionally, Micron's CEO expressed optimism about AI being in its early stages, noting that inference demand will significantly increase the need for high-speed memory.

With memory supply expected to remain tight until 2027 and Micron supplying HBM4 memory for Nvidia's new platform, analysts see a structural shift in the memory industry from homogeneous commodity to differentiated products, particularly with HBM's application in AI data centers reducing commoditization characteristics.