AMDL 2x AMD ETF Falls 18% as AMD Drops 9% on Burry Chip Bets

The GraniteShares 2x Long AMD Daily ETF (NASDAQ:AMDL) fell 18% to $51.35 on November 13 as Advanced Micro Devices (NASDAQ:AMD) dropped 9% to $532.68 amid a wider semiconductor selloff. The fund aims to deliver twice AMD's daily move and resets each day, so its longer-term results may not match that multiple. Both the stock and the fund rallied hard over the past week before the reversal.

The drawdown has not erased AMD's 2026 gains. The stock remains up 149% year to date, resting on record Q3 results reported November 3. Revenue rose 44.7% year over year to $13.38 billion. Data Center segment revenue jumped 97% to $8.55 billion, and management guided Q4 2026 revenue to $17 billion, plus or minus 3%.

What did Michael Burry say?

Scion Asset Management founder Michael Burry sharpened his case against chip valuations in a Substack post on the evening of November 12. He disclosed that he doubled his puts on the NASDAQ 100 and 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. His post singled out AMD as a potential beneficiary if the lead of NVIDIA (NASDAQ:NVDA) weakens, and placed Broadcom (NASDAQ:AVGO) in the same camp. That view explains his instrument choice: 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.

How far is the selloff spreading?

AMD's decline coincides with two pressures. Burry's bearish position is one. The second is sector-wide weakness tied to reports of leadership turmoil at NVIDIA, which accelerated as NVIDIA kept sliding.

The peer group shows the pattern. NVIDIA fell 2% to $162.69, a softer decline than AMD's despite sitting at the center of the turmoil. NVIDIA is on track for its worst week since the Trump tariff selloff. Broadcom dropped 5% to $346.50.

On November 12, AMD and Broadcom had gained on NVIDIA's loss, leaving both with fresh gains to give back. AMD's steeper drop on November 13 lines up with its bigger run over the past week. Technology is the weakest sector in the S&P 500, while consumer staples leads. The NASDAQ 100 is lower as well.

How does AMD's business differ from its peers?

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 tied to PCs, game consoles and industrial markets. CEO Lisa Su said on the November 3 call that competing with custom chips is "all about TCO," meaning total cost of ownership.

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 stock find a floor?

The bull case rests on AMD's Q4 outlook and on Su's remark that "demand is higher than supply" across parts of its data center lineup. Management expects Helios and Venice production to scale. It also said data center AI revenue should grow faster in 2027 than it previously projected.

The bear case starts with AMD's triple-digit price-to-earnings ratio and Burry's forecast of falling chip earnings. Leveraged funds such as AMDL magnify losses as well as gains, and AMDL charges a net expense ratio of 1.87%. Volatility in the fund could stay elevated until the debate over Burry's bearish thesis on chip earnings resolves.