Direxion Daily MU Bull 2X Shares (MUU), a leveraged exchange-traded fund tracking Micron Technology, surged 5.34% intraday on Tuesday.

The sharp gain follows a significant price target upgrade for Micron Technology by Citi, which raised its target from $425 to $840 while maintaining a "Buy" rating. Analysts cited expectations for Dynamic Random Access Memory (DRAM) price increases of more than 40% in the second half of the year, following a 100% price hike by peer Samsung in the first half. They also forecast the DRAM upcycle to extend through calendar year 2027 and anticipate High Bandwidth Memory (HBM) prices will rise next year due to tight capacity.

Citi analysts highlighted that AI-driven demand for memory chips is far broader than many on Wall Street had anticipated, with modern AI infrastructure creating demand across an entire "AI memory chain" from HBM and DRAM to NAND, SSDs, and HDDs. Structural constraints in HBM manufacturing, which involves complex advanced packaging, are limiting rapid capacity expansion to meet surging prices, creating a favorable pricing environment for memory manufacturers like Micron.