#d/dx [x^2exp(1/x^2)] = 2xexp(1/x^2)+x^2 times (-2/x^3)exp(1/x^2) = 2(x-1/x)exp(1/x^2)#
Since #exp(1/x^2)# is always positive, the sign of the derivative of our function is the same as that of #x-1/x#. To find out where our function is increasing we need to find the intervals of #x# where
#x-1/x>0#
We multiply both sides by #x^2# (Note - it might seem simpler and more natural to multiply both sides by #x# - but the sign of an inequality is not changed only if the multiplying factor is positive - hence the choice of #x^2#)
#x^3-x>0 implies (x-1)x(x+1)>0#
It is easy to see that this happens when either #x>1# (where all three factors : #x-1#, #x# and #x+1# are positive), or when #-1<x<0# (where #x+1# is positive and the other two factors are negative).