Direxion Daily MU Bull 2X Shares (MUU) surged 7.90% during intraday trading on Thursday, as the leveraged ETF tracking Micron Technology benefited from a confluence of positive catalysts across the semiconductor sector.

The rally was fueled by Tesla CEO Elon Musk's confirmation during the quarterly earnings call that Micron Technology recently allocated a significant volume of memory chips to Tesla under very reasonable supply terms, further validating the tight supply-demand dynamics in the memory chip market. Additionally, Korean semiconductor stocks staged a sharp rebound, with the KOSPI index surging over 5%, SK Hynix rising more than 8%, and Samsung Electronics gaining 5.6%. The Korean president's call for financial regulators to swiftly address concerns around single-stock leveraged ETFs helped ease market panic from earlier regulatory tightening. Bank of America also contributed to the bullish sentiment with a forecast projecting the High Bandwidth Memory market to expand sevenfold to $246 billion by 2030, raising its price target for Micron Technology to $155.

South Korea's stronger-than-expected second-quarter GDP growth, propelled by an AI-driven boom in chip exports, provided additional macroeconomic support for the memory chip sector. As a 2x leveraged ETF designed to deliver twice the daily return of Micron Technology, MUU amplified these positive developments, resulting in the pronounced intraday gain.