Advanced Micro Devices Inc. (AMD) rallied sharply through Thursday, sending leveraged ETFs tied to its shares soaring before Friday's reversal pared those gains.
The stock climbed approximately 30.3% from the Nov. 6 close through Nov. 12, closing at $585.30 on Thursday. The rally translated into even bigger gains for the 2X leveraged ETFs, with GraniteShares 2x Long AMD Daily ETF (AMDL) surging approximately 66% over the same period.
However, the momentum reversed Friday, with AMD shares falling sharply amid renewed volatility in artificial intelligence stocks. The four leveraged funds, AMDL, Leverage Shares 2X Long AMD Daily ETF (AMDG), Direxion Daily AMD Bull 2X ETF (AMUU) and Corgi AMD 2x Daily ETF (AMDC), were down approximately 19%-20% intraday.
What Fueled the Extraordinary Rally?
Three developments helped propel AMD shares higher.
First, AMD reported record third-quarter results on Nov. 3, with revenue jumping 45% year over year to $13.4 billion. Data Center revenue nearly doubled, climbing 97%, as demand for Instinct GPUs and EPYC processors strengthened. The company also forecast fourth-quarter revenue of approximately $17 billion.
Second, Oppenheimer upgraded AMD to Outperform from Perform on November 9, setting a $600 price target. Analyst Rick Schafer projected 135% growth in Data Center revenue in 2027.
Third, AMD announced that its fifth-generation EPYC processors would power Google Cloud's new TPU 8tx infrastructure, strengthening its position in the expanding AI computing market.
The developments coincided with a dramatic rotation into rival chipmakers following Nvidia Corp. (NVDA)'s leadership crisis. Nvidia shares fell approximately 11% over the Nov. 6-12 period, while investors increasingly favored AMD and Broadcom Inc. (AVGO).
Why Friday's Reversal Matters
The sharp decline highlights the risks of leveraged single-stock ETFs. These funds target twice AMD's daily percentage move, not twice its cumulative return over several days.
Daily resetting and compounding can amplify gains during sustained rallies but accelerate losses when the underlying stock reverses. Friday's selloff shows how quickly those gains can shrink.
With Nvidia's upcoming Nov. 17 earnings potentially shaping sentiment across the AI semiconductor trade, AMD-linked leveraged ETFs remain particularly sensitive to further swings in the sector.
