The GraniteShares 2x Long AMD Daily ETF (AMDL) is a leveraged exchange-traded fund designed to provide 200% the daily performance of Advanced Micro Devices, Inc. (AMD) shares. With AMD gaining momentum in the market through improving economics and the rapid adoption of agentic AI, AMDL could be an appealing investment vehicle for those seeking to amplify their exposure to AMD shares while actively trading throughout market volatility. Given the enhanced risk factors associated with leveraged funds, including NAV erosion and compounded multi-period performance, I am recommending AMDL to be utilized only by experienced traders for daily exposure.
You can review my recent coverage of AMD here.
Investment Thesis for AMDL
AMD is reaching an inflection point, transitioning to higher growth as adoption of agentic AI accelerates in the market, driving multi-gigawatt deals for infrastructure deployments to facilitate this transition. My core thesis for AMD revolves around the growing market for CPU servers, which are becoming more heavily utilized for AI inferencing and agentic AI as a low-cost, low-power component for orchestrating data flows across the infrastructure stack. While AMD has lagged behind its peer NVIDIA Corporation (NVDA) in the GPU market, AMD has been gaining market share for its CPU server chips as adoption of EPYC CPUs expands across enterprises and cloud services providers. The biggest growth driver for AMD is the shifting ratio of GPUs to CPUs in the server stack to run agentic AI workflows. Where AI training has been GPU-heavy with a 10:1 ratio, agentic AI evens the playing field with a 1:1 ratio of GPUs to CPUs, providing a longer runway for growth for AMDs EPYC CPUs.
This shift has led to AMD achieving an accelerated growth trajectory for its data center server chips, providing a 57% year-over-year growth rate in q1’26. With the growing momentum for CPU chips, I’m forecasting the data center segment to grow at an 80% rate for all of eFY26, underpinned by multiple multi-gigawatt agreements for compute capacity, which should support incremental improvements to the operating margin throughout the year.
This can play into AMDL in multiple ways, presenting an appealing growth trajectory for AMD shares and in turn, AMDL shares, as well as setting high expectations for operational execution that may lead to greater volatility in shares. My basis for assumed volatility is derived from the elevated trading premium at 23.77x price/sales, well above AMD shares’ historical range. With greater risk at stake tied to execution, I believe that any risk to the growth story can create volatile pricing movements, which can create opportunities for active traders in AMDL.
Seeking Alpha
As for an actionable trading set up, AMD and AMDL shares appear to be turning towards one more upward wave cycle before being followed by a modest retracement. This means that AMDL shares could price at around $89/share before undergoing the retracement cycle between growth cycles.
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As for the long-term thesis, AMDL can be an appealing trading vehicle given the generally positive momentum in AMD shares, meaning that shares have generally appreciated over time throughout the wave cycles, creating an appealing setup for active traders seeking long-only positions. While I cannot advise holding AMDL for longer than a single trading day, the compounded effects of holding through the next upcycle could potentially provide outsized appreciation, though presents significant downside risk if the trade isn’t successful.
Risks Related to AMDL
AMDL is a leveraged, single-stock trading vehicle designed to provide 200% the daily performance of AMD shares, exhibiting significant risks that should be considered prior to making a final investment decision. Leveraged strategies expose investors to compounded risk when held longer than a single trading day, which could significantly impact an investor’s returns beyond the 2x daily performance target. For example, if an investor allocated $100 to AMDL shares and AMD appreciated by 1% of the first trading day, the investor would close the day with $102. If AMD were to decline by -1% on the following trading day, the investor would close the day with $99.96 and not $100. Multiple days of consecutive losses may compound and result in unsalvageable losses. In addition to this, fund maintenance may expose investors to NAV decay over time.
Actively trading AMDL may expose traders to higher tax impacts, trading fees, spread risk, and other potential costs that may impact the total return of a position.
Given the risky nature of leveraged strategies, traders must exhibit strict risk management protocol in order to protect their initial investment. Losses may compound if a trade were to go sideways and may not be recoverable over a longer holding period.
You can review additional risks here and the SEC bulletin here.
Final Thoughts
AMDL can be an appealing trading strategy for those seeking to actively manage a position in AMD with amplified returns. With $1.54 billion in net assets and an average daily trading volume of $353 million in share value, AMDL can provide ample liquidity for those seeking to add incremental value as part of a trading strategy. Given the risky nature of leveraged funds, AMDL should be used only for daily exposure.
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