AMDL 2x AMD ETF Falls 18% as Burry Doubles Down Against Chips

The GraniteShares 2x Long AMD Daily ETF (NASDAQ:AMDL) fell 18% to $51.35 on November 13, as Advanced Micro Devices (NASDAQ:AMD) slid 9% to $532.68 and a broader semiconductor selloff accelerated. The leveraged fund is designed to deliver twice AMD's daily move and resets each day, which means its longer-term results can diverge from that multiple. The decline reverses part of a steep run in chip shares over the past week, one that had lifted both the stock and the fund sharply before the turn.

The stakes for the AI hardware market are direct. AMD remains one of the year's strongest performers, up 149% year to date even after the drop, and its fortunes track the capital spending cycle on AI accelerators that has driven the entire sector. A public bearish bet by a closely watched investor, layered on top of leadership turmoil at NVIDIA, has now put that rally under pressure.

What did Michael Burry say?

Scion Asset Management founder Michael Burry said in a Substack post on the evening of November 12 that he doubled his puts on the NASDAQ 100. In the same post, Burry disclosed that he bought back 25% of previously reduced puts on the VanEck Semiconductor ETF (NASDAQ:SMH). A put option gains value when the underlying asset falls.

Burry argued that chip valuations "still have a ways to fall," and said he expects earnings to decline over the next couple of years. That forecast cuts against the record results AMD posted only days earlier, and it frames the current selloff as a valuation debate rather than a single-day trading event.

His post singled out AMD as a potential beneficiary if the lead of NVIDIA (NASDAQ:NVDA) weakens. He placed Broadcom (NASDAQ:AVGO) in the same camp. That view explains his instrument choice: Burry said he prefers the VanEck fund over a competing iShares semiconductor ETF for shorting, because AMD and Broadcom carry the largest weights in the iShares fund.

Why is AMD falling despite record earnings?

The drop comes amid Burry's bearish position and a wider chip selloff tied to leadership turmoil at NVIDIA. NVIDIA kept sliding through the session, and the selloff across the sector accelerated with it. Technology is the weakest sector in the S&P 500, while consumer staples leads. The NASDAQ 100 is lower as well.

The irony is that AMD's fundamentals point the other way. The company reported record results for Q3 2026 on November 3, filed with the SEC. Revenue rose 44.7% year over year to $13.38 billion. The Data Center segment, the engine of the AI business, jumped 97% to $8.55 billion. Management guided Q4 2026 revenue to $17 billion, plus or minus 3%.

AMD stock rallied hard after those numbers, along with the leveraged fund tied to it. The current decline gives back part of that gain. AMD's steeper drop on November 13, relative to peers, lines up with its bigger run over the past week, according to the report.

What do the peer numbers show?

• NVIDIA stock is at $162.69, down 2%. That is a softer decline than AMD's, even though NVIDIA lies at the center of the turmoil. NVIDIA is on track for its worst week since the Trump tariff selloff.
• Broadcom stock is at $346.50, down 5%. On November 12, AMD and Broadcom were getting a boost from NVIDIA's loss, which left both with fresh gains to give back.
• Technology is the weakest sector in the S&P 500. Consumer staples leads.

The pattern shows a rotation out of the AI trade's biggest winners rather than damage confined to one company.

How does AMD's business compare with NVIDIA and Broadcom?

Server processors and AI accelerators anchor AMD's data center business. The company pairs EPYC central processing units with Instinct graphics processing units in its Helios rack-scale systems. AMD also runs client, gaming and embedded businesses that tie part of its results to PCs, game consoles and industrial markets.

CEO Lisa Su said on the November 3 earnings call that competing with custom chips is "all about TCO," meaning total cost of ownership. That remark positions AMD's pitch to hyperscale buyers on total economics rather than raw chip performance.

NVIDIA's core is a full AI platform built on its GPUs, networking gear and the CUDA software ecosystem. Broadcom designs custom AI accelerators and networking chips for hyperscale customers, and adds a separate enterprise software revenue stream through VMware. AMDL stands apart from all three because it tracks AMD alone with daily leverage.

Can AMD's rally survive the selloff?

AMD's next move depends on whether chip stocks find a floor after the selloff tied to NVIDIA's leadership turmoil.

The bulls can point to the company's Q4 outlook and to Su's remark on the earnings call that "demand is higher than supply" across parts of its data center lineup. Management expects Helios and Venice production to scale, and said data center AI revenue should grow faster in 2027 than it previously projected.

The bears have a case of their own. It starts with AMD's triple-digit price-to-earnings ratio and Burry's forecast of falling chip earnings. If earnings across the sector contract over the next two years, as he predicts, the premium valuations built during the AI buildout become harder to defend.

The leveraged structure of AMDL raises the stakes for anyone trading the volatility. Leveraged funds magnify losses as well as gains, and AMDL charges a net expense ratio of 1.87%, a drag that compounds for holders who stay in the fund through choppy sessions like this one. The fund's 18% single-day decline on November 13 is roughly twice AMD's 9% drop, which is the mechanism working as designed on the way down.

Volatility in leveraged products such as AMDL could stay elevated until the debate over Burry's bearish chip thesis resolves, and until the market prices whether NVIDIA's boardroom turmoil changes the competitive order among AI chip suppliers.