Direxion Daily TSM Bull 2X Shares

TSMX

Market cap $138M

Micron smashed its fiscal Q4 earnings with beats across the board and positive guidance on Tuesday, which should gives bulls more room to run. However, its largest peer in the semiconductor space, Nvidia, could be heading in the opposite direction.

Nvidia has been sitting pretty atop the list of largest companies. After its fiscal year 2026 Q2 earnings, it sent a message that it plans to remain there.

TSMX is a 2x leveraged ETF on TSM, best suited for short-term speculation, not long-term holding due to compounding and expense drag. Leveraged and inverse ETFs like TSMX and TSMZ are structurally designed for daily resets, making them risky and inefficient for extended holding periods. Despite recent strong performance, long-term holders of TSMX underperform simply holding 2x TSM stock due to high costs and structural decay.

As if semiconductors didn't need more momentum, the passage of “One Big Beautiful Bill” could keep investors dipping into chips. In turn, traders may want to watch a few leveraged products from Direxion.

With AI continuing to garner interest, names like Nvidia and Taiwan Semiconductor Manufacturing are seeing stock purchases from the whales of the investment ocean. Those generally are billionaire fund managers.

AI chipmaker Nvidia has been on an amazing upward trajectory for the past few years. It finally faltered after China startup DeepSeek introduced new AI technology: a free, open-source large language model platform.

Taiwan Semiconductor Manufacturing Company (TSM) produces 90% of the world's supercomputer semiconductor chips, powering top smartphone and AI applications. While TSM's stock has long-term strength, it experiences short-term volatility due to tech sector and geopolitical factors, creating opportunities for risk-tolerant traders.

Nvidia gets most of the stock market fanfare in the semiconductor category. However, Taiwan Semiconductor (TSM) has also been a stellar performer.

Taiwan remains a geopolitical hotspot, with tensions between China and the U.S. affecting Taiwan Semiconductor's market dynamics and potential tariffs under the Trump administration. Taiwan Semiconductor is a leading chip manufacturer, critical for U.S. electronics, with shares reaching record highs in 2024 due to soaring semiconductor demand. The Direxion Daily TSM Bull 2X Shares ETF amplifies TSM's gains, offering significant returns but requiring careful time and price management due to leverage.

A persistent bullish trade this year has been the semiconductor industry with the S&P 500 Semiconductors Index up over 80% for the year. As semiconductor sales grow, this gives traders various options for bullishness, including 5 ETFs from Direxion.