NVIDIA Rises 2% to $169.80 as Michael Burry Doubles Chip Shorts

NVIDIA stock traded at $169.80 on the morning of November 13, up 2%, even as Michael Burry disclosed that he had doubled his put position against the Nasdaq 100 and rebuilt a short against the chip sector's largest fund.

The bounce defies a bruising month. NVIDIA shares have fallen 26% over the past four weeks, a decline that began in earnest when Jensen Huang resigned as the company's CEO on November 12. The resignation sent NVIDIA lower and lifted its closest rivals in immediate trading. That trade is now partially reversing.

Advanced Micro Devices (NASDAQ:AMD) pulled back 3% to $569.11. Broadcom (NASDAQ:AVGO) slipped 2% to $355.70. Both companies had rallied after the leadership news, as traders rotated toward NVIDIA's competitors — a shift Barron's highlighted on November 12.

What did Michael Burry disclose?

In a Substack post published November 12, Burry said he used a bounce in the Nasdaq 100 off the 27,000 level to double his put position on the index. Puts are options contracts that gain value when the underlying price falls, so a slide in index heavyweights such as NVIDIA would work in Burry's favor.

The contracts carry an early 2027 strike. Burry estimates the position sits 20% out of the money, meaning the index would need a steep drop before the options pay off.

Burry also disclosed that he bought back 25% of a previously reduced put position expiring in June on the VanEck Semiconductor ETF (NASDAQ:SMH). NVIDIA is that fund's largest holding, which makes the ETF a leveraged expression of Burry's view on the chip sector's dominant company.

His reasoning is valuation. Burry stated that chip valuations "still have a ways to fall" and that he expects earnings to decline over the next couple of years. That is a direct bet that the AI-driven earnings cycle underpinning semiconductor prices has peaked.

Why are AMD and Broadcom falling despite Burry's nod?

The same Substack post named Broadcom and AMD as potential beneficiaries if NVIDIA's market power weakens. Both stocks moved against that framing on November 13.

AMD traded at $575.60, down 2% in later trading, after the GPU challenger had rallied on rotation away from NVIDIA following the leadership news. Broadcom traded at $358.86, down 2%. The pullback may reflect profit taking after the gains that followed Huang's exit.

The result is a market that is running directly against Burry's thesis in both directions. NVIDIA, the company most exposed to his short, is rising. The two rivals he identified as beneficiaries are giving back ground. The trade that dominated the sessions after Huang's resignation has partly unwound in a single morning.

How do the three companies compete for AI spending?

The stakes in this rotation sit on the spending side of the AI buildout, where NVIDIA, AMD and Broadcom sell distinct products to the same cloud buyers.

• NVIDIA sells general-purpose graphics processing units and full accelerated-computing platforms, from Blackwell to Vera Rubin. Its CUDA software ecosystem keeps developers and hyperscalers building on NVIDIA hardware.
• AMD, the challenger in both GPUs and CPUs, pairs its Instinct accelerators and Helios rack-scale systems with EPYC server processors. The combination gives cloud buyers a credible alternative to NVIDIA's stack.
• Broadcom designs custom AI accelerators — application-specific integrated circuits, or ASICs — for a limited set of large cloud customers. It also sells networking silicon and runs an infrastructure software segment that includes VMware.

Burry's short therefore targets the center of the AI supply chain, while his named beneficiaries sit at its edges: one offering a substitute platform, the other offering bespoke silicon that bypasses general-purpose GPUs entirely.

What is happening in Washington?

NVIDIA's rebound also comes against widening political scrutiny, which compounds the risks around the stock independently of Burry's positioning.

Huang has agreed to testify in a closed-door House session before Thanksgiving. Commerce Secretary Howard Lutnick agreed to appear voluntarily before the Senate Banking Committee on December 10, to address oversight of NVIDIA chip exports to China.

Reuters reported that it identified more than $3 billion in Chinese computing projects built around restricted NVIDIA processors. That figure gives lawmakers a concrete number to press on when the two appearances take place, and it frames the export-control question that now shadows NVIDIA's China business.

For NVIDIA, the immediate questions are whether the testimony calms those export concerns, and whether the chip rally shifts away from the company toward AMD and Broadcom.

Can the bulls and bears both claim this market?

Both camps have material to work with after November 13's session.

The bulls can argue that NVIDIA's platform lead remains intact, anchored by CUDA and the Blackwell-to-Vera Rubin hardware roadmap, and that the month-long 26% decline already reflects much of the leadership turmoil. A 2% bounce on a day when a prominent short seller doubles his position is, on that reading, a sign of demand that refuses to break.

The bears have Burry's valuation warning, a CEO transition at the most important company in the sector, and rising regulatory heat in Washington. A put position 20% out of the money with an early 2027 strike is a patient bet, not a trade on next week's tape.

What signals come next?

One near-term signal to watch is a renewed climb in AMD and Broadcom shares, which would indicate the rotation away from NVIDIA has resumed. A conservative approach could make sense until Washington's review of NVIDIA's chip exports concludes — a timeline that now runs through Lutnick's December 10 Senate appearance.

Until then, the market is settling a disagreement between Burry's positioning and the tape: the investor who called the last collapse says chip earnings have further to fall, and on the morning he said it again, the stock he is most exposed to rose 2%.