Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF

UBOT

Market cap $27.2M

If you're going to be part of the Magnificent Seven, you better do something that's, well

Despite initial fears surrounding tariffs and their effects on artificial intelligence stocks, the sell-off in early April hasn't been an unraveling of the AI trade. Subsequent Q1 earnings reports have been largely favorable.

Microsoft and the cloud computing sector appear to have sloughed off April volatility showers . The software maker has been rallying post-Q1 earnings.

Market volatility is causing investors to seek the safety of uncorrelated assets like gold and bonds. However, the utilities sector could offer up a safe haven sector that traders could also take advantage of during heavy market fluctuations.

Major indexes in the stock market have been upended by tariff news as of late. Tech has been taking the brunt of the blow as the Nasdaq-100 has been sliding since mid-February.

We'll most likely see growth continue in the near and long term for cloud computing as well as artificial intelligence (AI). This gives traders a pair of options to capitalize on: the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL) and the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).

The AI investing theme continues to gain momentum, offering traders a multitude of opportunities to capitalize on advancements in technology. As more adoption takes place on a massive scale, it could push the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT) higher.

The Nasdaq is down well over 3% as of this writing, with AI hardware names driving the declines. The main AI infrastructure stock, Nvidia, is down roughly 20% over the last two trading days, which equates to a drop of nearly $700 billion in market cap.

Artificial intelligence (AI) was a constant investing theme in 2024. And its dominance in 2025 could go unabated, with Nvidia being one of the top names leading the way.

The S&P 500 continues to march higher, reaching over 27% year to date. Bullish bets for 2025 are already coming for the index, with the most ambitious target being a price target of 7,100 from ETF provider Oppenheimer.