In one of the most jaw-dropping Lazarus acts in recent memory, Intel (INTC), once seemingly left for dead by some tech investors, is up a staggering 443.9% over the past year. That includes a scintillating 149.11% run over just the past 90 days. Predictably, percentages like those may compel some risk-tolerant traders to evaluate the Direxion Daily INTC Bull 2X ETF (LINT), with good reason. LINT, which is part of Direxion’s single-stock ETF lineup, attempts to deliver 200% of the daily performance of the semiconductor. On some days, that can be a very good thing and, not surprisingly, artificial intelligence (AI) is part of the equation.
“Intel’s turnaround is increasingly an AI story. The company still lacks a meaningful AI GPU business capable of competing directly with Nvidia…but renewed demand for server CPUs has transformed investor perceptions of its prospects,” noted Morningstar’s Ananya Chang.
Looking Into LINT
Much of the AI boom has been about GPU’s, which has been to Nvidia’s benefit, but with agentic AI gaining more momentum, CPUs are coming back into focus. That led to Intel’s redemption and the opportunity for aggressive short-term traders to capitalize with LINT.
“On the other hand, CPUs, like the ones made by Intel, generally manage a wide variety of tasks and coordinate different systems. The boom in agentic AI—which is built to make decisions, plan multi-step tasks, and coordinate workflows—has brought CPUs into the spotlight,” added Chang.
Of note to traders considering the geared LINT, CPUs and GPUs aren’t necessarily direct competitors. As Morningstar’s Brian Colello pointed out, these chips are working “side by side,” but there is competition in the realm which prospective LINT traders need to consider. Earlier this week, Nvidia unveiled Vera, a CPU designed specifically for agentic AI. So, there are competitive pressures in the CPU market, confirming traders should tread carefully with LINT, treating the ETF as a short-term trade, not a long-term investment.
“Intel and AMD are the incumbents, and so they’re in tremendously high demand, but other chips are coming in to the extent that the hyperscalers can reduce their reliance on Intel and AMD, they might choose to do so,” added Chang.
For sophisticated, tactical traders, there is allure with LINT. In some corners of the market, there’s clear enthusiasm for Intel’s AI and redemption stories. Likewise, some market participants consider it a positive that U.S. government owns a piece of the company. Just remember to take LINT’s short-term gains when they accrue and not be greedy.
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