I’m continuing to average down my position in $MU 2X Long ETF(MUU.US) because I believe the recent correction has pushed the 2x Micron ETF much closer to a potential bottoming zone. The selloff has been painful, especially given MUU’s leverage, but I see it more as a valuation reset than a breakdown in the underlying Micron story. Micron recently reported record fiscal Q3 revenue of $41.46 billion and guided for another record $50 billion in fiscal Q4 revenue, showing that the fundamental earnings momentum remains exceptionally strong.

The second reason I’m staying bullish is the structural AI-driven demand for memory. HBM, DRAM and NAND remain critical to the AI infrastructure buildout, while Micron has already started high-volume HBM4 shipments. The company has also highlighted persistent supply constraints and stronger-than-expected demand, which could support pricing and margins for longer than a typical memory cycle. With MUU already suffering a major correction, I think much of the short-term fear has been priced in, while the longer-term AI memory thesis remains intact.

Of course, averaging down on a 2x leveraged ETF is much riskier than buying MU directly, and I’m not expecting the rebound to happen in a straight line. MUU can remain extremely volatile, and daily leverage can amplify both gains and losses. But at current levels, I believe the risk-reward is becoming more attractive. My view is that MUU is somewhere near a bottoming area, and if Micron stabilizes and the semiconductor sector regains momentum, I expect another rebound rally. For me, this is less about catching the exact bottom and more about gradually lowering my average cost before the next major move higher.