The artificial intelligence infrastructure trade has minted a new star in the ETF world, and it's not your typical tech fund.

While Dell Technologies (DELL) stock has surged more than 245% year-to-date as of Tuesday's close, traders using leveraged products have seen gains that make that look almost pedestrian. The Direxion Daily DELL Bull 2X Shares ETF (DLLL), which aims to deliver twice the daily return of Dell shares, has skyrocketed over 810% this year. That's way more than double Dell's gain, thanks to the magic—and risk—of daily compounding.

To put that in perspective: a $10,000 investment in DLLL at the start of 2026 would now be worth about $91,000. The same money in Dell shares would be worth roughly $34,500. Not bad either way, but the leveraged version turned a great year into a life-changing one.

The ETF's explosive rally is built on Dell's emergence as one of Wall Street's favorite AI infrastructure plays. The company is riding a wave of demand for AI servers, data center equipment, and enterprise hardware that shows no signs of slowing.

AI Demand Powers Dell's Record Run

Dell's latest earnings report was the rocket fuel. The company posted first-quarter revenue of $43.84 billion, well above the $35.45 billion analysts expected. Adjusted earnings came in at $4.86 per share, crushing the consensus forecast of $2.94. Management also raised its fiscal 2027 outlook, citing robust demand for AI infrastructure products.

The stock gained about 57% last week alone after the earnings release. Positive read-throughs from other enterprise hardware companies, including Hewlett Packard Enterprise (HPE), have only strengthened the bullish case for Dell's AI-driven growth.

And there's more: Dell recently unveiled a new XPS 13 laptop aimed at students and younger consumers. The company calls it its thinnest and lightest XPS model yet, with pricing designed to compete more directly with lower-cost offerings from Apple.

Analysts are piling on the optimism. Goldman Sachs, Mizuho, and Bernstein recently raised their price targets to $500. Morgan Stanley upgraded the stock to Equal-Weight from Underweight and boosted its target to $448.

Can the DLLL ETF Keep Climbing?

DLLL's performance is a textbook example of how leveraged ETFs work—and why they can be dangerous. Because the fund seeks 200% of Dell's daily return, gains compound rapidly during strong uptrends. But the same structure amplifies losses when momentum reverses.

Case in point: on Wednesday morning, the fund dropped nearly 12% in a sudden move that likely spooked some investors. Technical indicators suggest Dell's rally is strong but increasingly stretched. The stock is trading well above its major moving averages, and its relative strength index has climbed to nearly 90—a level often associated with overbought conditions.

Still, as investors continue pouring money into AI infrastructure plays, momentum traders seem willing to look past valuation concerns. If Dell's AI server business keeps delivering outsized growth, DLLL could remain one of the most closely watched leveraged ETFs in the market. Just don't expect a smooth ride—the path is likely to be far more volatile than the stock it tracks.