Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in MU.

Micron Technology, Inc. (Ticker: MU) has found itself right in the middle of the AI hardware boom. The memory and storage giant is set to report earnings on June 25, which could lead to some big moves in the stock in either direction.

For Micron, Wall Street is projecting revenues of $8.83 billion (up about 30% year-over-year) and earnings per share (EPS)* of $1.59, more than double from a year ago, according to Trefis. The stakes are high—and so is the uncertainty.

Below is a daily chart of MU, as of June 2, 2025.

Source: StockCharts.com.

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

Micron has recently made headlines for its aggressive push into high-bandwidth memory (HBM), a critical component in AI data center infrastructure. In fact, HBM revenue rose 50% sequentially last quarter, with Micron ramping production to meet surging demand from GPU manufacturers and hyperscalers.

Yet even with these tailwinds, traders remember what happened in March. On the heels of a strong fiscal Q2 report—with revenue jumping 38% year-over-year—Micron shares dropped 8% in a single session, according to Barchart. Sometimes, good just isn’t good enough.

With earnings on deck and the AI race heating up, MU traders are bracing for another potentially volatile* reaction. Here’s a breakdown of the bull and bear case ahead of June 25—and how tactical traders might position using Direxion’s Daily Leveraged and Inverse ETFs on Micron.

Bullish Catalysts

1. AI Fuel: HBM Demand Accelerates

Micron’s leadership in HBM is gaining attention. These advanced chips are essential for training large AI models, and are often used alongside GPUs from Nvidia and AMD. As data centers scale up, demand for Micron’s HBM has surged.

According to Trefis, Micron is seeing strong traction in this category, with sequential growth of 50% last quarter—a sign the company is riding the AI infrastructure wave at full speed.

2. Blowout Growth Expectations

Earnings expectations are lofty for a reason. Year-over-year revenue growth of 30% would mark another acceleration from Q2’s 38.3% jump. EPS is expected to climb from $0.62 to $1.59 a share, supported by margin expansion and a richer product mix.

As Zacks Equity Research recently noted, Micron’s strong guidance is attracting institutional interest—suggesting some believe there’s room to surprise to the upside again.

3. Tech Edge Over Rivals

Micron is reportedly the only company mass-shipping low-power, dynamic random-access memory (DRAM) for data centers—a growing priority in an energy-conscious AI era. The company also says it’s gaining market share in high-margin segments, potentially outpacing rivals like SK Hynix and Samsung.

If management reinforces this edge on the earnings call, it could give bulls more ammunition heading into the second half of 2025.

Bearish Catalysts

1. Last Time: Beat the Street, Still Got Beat Down

In March, Micron posted a strong Q2—yet the stock sank 8% post-earnings. Why? The bar was already high, and some traders took profits amid broader semiconductor volatility.
This shows that strong numbers don’t guarantee a rally—especially when the chip sector could be priced for perfection.

2. Macro Risk: Tariffs and Trade Tensions

Recent tariff announcements rattled markets in April, triggering one of the steepest drops since the 2020 pandemic lows. With Micron’s global supply chain and heavy exposure to China, any renewed escalation in U.S.-China chip tensions could weigh on shares regardless of company fundamentals.

3. AI Overexposure and Sector Froth

While AI has powered a major leg up for many semis, it’s also led to lofty valuations. Traders are increasingly sensitive to signs of AI fatigue or overexuberance. If investors pivot toward software or non-tech sectors, Micron could get caught in a rotation—especially if guidance doesn’t exceed expectations.

Trade the Setup with Single Stock Daily Leveraged and Inverse ETFs

Whether traders are bracing for a post-earnings breakout or positioning for another drop, Direxion’s Single Stock Daily Leveraged & Inverse ETFs on Micron offer tactical exposure.

The Direxion Daily MU Bull 2X Shares (Ticker: MUU) and Direxion Daily MU Bear 1X Shares (Ticker: MUD) seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Micron Technology, Inc.

These are short-term trading tools, designed for experienced traders who want to dial up or down exposure around high-impact catalysts like earnings. With Micron reporting June 25, and the memory wars heating up, volatility could be on the horizon.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Micron Technology, Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Micron Technology, Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Micron Technology, Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Micron Technology, Inc. could affect the value of a Fund’s investments with respect to Micron Technology, Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with MU and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with MU and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to MU is impacted by MU’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to MU at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to MU increases on days when MU is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with MU and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to MU is impacted by MU’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to MU at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to MU increases on days when MU is volatile near the close of the trading day.

Micron Technology, Inc. – MU faces risks associated with the highly competitive nature of the semiconductor industry; economic and market uncertainty; reductions in demand for its products; potential concentration of revenues in a few large clients as among other risks.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily MU Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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