Confirming a prominent perch of its own in the artificial intelligence (AI) semiconductor space, Advanced Micro Devices (AMD) is up more than 90% this year and has more than quadrupled in value over of the past year.

Read more: AI’s Memory Bottleneck Has Traders Flocking to This ETF

As the company’s latest quarterly earnings update confirms, AI compute demand is through the roof. Now, the focus is on AMD’s ability to wrest more market share from rival Nvidia (NVDA) while proving to the investment community it’s capable of consistently generating high margin revenue.

If AMD is successful in accomplishing those objectives, aggressive traders could gravitate to the Direxion Daily AMD Bull 2X Shares (AMUU), a leveraged ETF designed to deliver 200% of the daily returns of AMD shares. For traders with flairs for risk, AMUU could be a good arrow to have in their respective quivers, because this is a catalyst-rich stock.

Supply/Demand Dynamics Look Good for AMD

As Jake Behan, head of capital markets at Direxion, pointed out, from surging demand for AI chips has boosted AMD. More importantly, the company is turning that demand into top-line growth. That could be a sign of ample opportunity for traders to occasionally deploy AMUU.

“AI spending is moving higher, and while the stock had already moved with it, the stronger-than-expected outlook shows AMD is starting to outperform what was already priced in,” noted Behan. “Compute demand has been seemingly insatiable, which is why “picks and shovels” names like AMD continue to benefit as hyperscalers race to secure GPU capacity.”

Leading into this year, the thesis underpinning chip stocks such as AMD and Nvidia largely revolved around data centers. That’s not going to change anytime soon. But before we know it, it’ll be 2027, when the next generation of AI GPUs is expected to come online. That could bring fresh demand drivers for companies like AMD — and more opportunity to use AMUU.

Before getting there, hyperscaler spending remains in focus. If companies such as Meta keep upping the ante, AMD could benefit. As it is, evidence confirms AMD is gaining market share in the AI compute arena.

“More broadly, hyperscaler spending has shifted from cyclical to structural, creating multi-year, sticky revenue roadmaps for the companies like AMD supplying that AI infrastructure,” added Behan. “The question for AMD isn’t demand, it’s execution, specifically how much of that demand they can actually fulfill given ongoing supply constraints.”

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