Summary Table

The GraniteShares 2x Long AMD Daily ETF (ticker: AMDL) is a leveraged exchange-traded fund designed to provide investors with twice the daily return of Advanced Micro Devices, Inc. (AMD) common stock. This article offers a neutral overview of AMDL’s design, underlying asset, risk-return profile, and suitability for different investors and traders.

Design and Underlying Asset:  AMDL seeks daily investment results, before fees and expenses, equal to 200% of the daily percentage change in AMD’s stock price. AMD is a leading American semiconductor company known for its processors and graphics technologies. Unlike broad index ETFs, AMDL focuses solely on AMD stock, using leverage to amplify daily price movements.

The fund uses a simple, high-conviction strategy with daily rebalancing to maintain 2x leverage. This daily reset means returns over periods longer than one day may not equal twice the cumulative return of AMD due to compounding effects.

Risk and Return Characteristics:  AMDL’s 2x leverage magnifies both gains and losses on a daily basis. For example, a 1% increase in AMD stock price in one day aims to translate into roughly a 2% gain for AMDL, and vice versa for declines.

Key risks include:

• Leverage and Compounding Risk: The daily reset causes performance over multiple days to deviate from a simple 2x multiple of AMD’s cumulative returns, especially in volatile markets.
• Single-Stock Concentration: AMDL’s exposure is limited to AMD stock, exposing investors to company-specific risks such as competitive pressures, supply chain issues, and market demand fluctuations.
• Market Volatility: Semiconductor stocks like AMD can be highly volatile, which can amplify AMDL’s price swings.
• Expense Ratio: The fund has an expense ratio of approximately 1.15% per annum, which affects net returns.

Historically, AMDL has experienced significant volatility, with a one-year NAV return around -76.7% and notable divergence from AMD’s benchmark returns during turbulent market periods.

Suitability for Traders and Investors:  AMDL is primarily suited for investors with a bullish short-term outlook on AMD stock who understand leveraged ETFs and their risks. It is appropriate for:

• Short-Term Traders: Those aiming to capitalize on daily price movements in AMD stock.
• Experienced Investors: Individuals familiar with leverage, daily reset ETFs, and single-stock risks.

AMDL is generally not recommended for long-term buy-and-hold investors due to leverage decay and volatility effects.

Technical Analysis:  The GraniteShares 2x Long AMD Daily ETF (AMDL) is exhibiting strong bullish momentum, closing at $7.69 with a notable 7.33% daily gain, pushing above key resistance levels. The price has broken above the 20, 50, and 100-day EMAs, currently at $5.79, $6.15, and $6.38 respectively, and is now approaching the 200-day EMA at $8.28, which serves as the next significant resistance level. This move suggests a clear shift from a prolonged downtrend into a short- to medium-term uptrend. The RSI is in overbought territory at 72.23, signaling strong upward momentum, but also raising the possibility of a short-term pullback or consolidation. If AMDL can break and hold above the 200-day EMA, it could confirm a full trend reversal. However, traders should monitor closely for signs of exhaustion as the price nears this critical level. Overall, the technical setup points to a bullish bias, but some caution is warranted given the extended RSI.

Technical Table

*Closing Price as of June 23^rd, 2025

Conclusion

In conclusion, AMDL is demonstrating strong bullish momentum and approaching a key resistance at the 200-day EMA, indicating the potential for a trend reversal. However, with the RSI in overbought territory and the risks associated with leveraged ETFs—such as volatility and compounding decay—traders should approach with caution. This ETF is best suited for short-term, active traders looking to capitalize on AMD’s near-term strength rather than long-term investors.

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