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

NVIDIA stock climbed 2% to $169.80 in morning trading on November 13, even as Michael Burry disclosed he had expanded his bets against the chip sector. The gain cuts directly against the short thesis of the investor known for calling the 2008 housing collapse. But one strong session does not settle the argument. NVIDIA shares remain down 26% over the past month.

The rally follows a leadership shock. Jensen Huang resigned as NVIDIA's chief executive on November 12. The news sent the stock lower and lifted its closest rivals in immediate trading. That rotation is now partly reversing.

Advanced Micro Devices fell 3% to $569.11. Broadcom slipped 2% to $355.70. Both had gained in the sessions after Huang's exit, and the pullback may reflect profit taking, according to the report.

What did Burry actually disclose?

In a Substack post on 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. Those contracts carry an early 2027 strike. Burry estimates the position sits 20% out of the money. In plain terms, the index would need a steep drop for the puts to pay off.

He also bought back 25% of a previously reduced put position expiring in June on the VanEck Semiconductor ETF (SMH). NVIDIA is that fund's largest holding. Burry stated that chip valuations "still have a ways to fall" and that he expects earnings to decline over the next couple of years.

Note what he did not say. He offered no target price and no timeline beyond a two-year earnings view. The strikes sit far from current levels. His own words concede the trade needs a major decline to work.

Why are AMD and Broadcom falling despite his nod?

The same Substack post named Broadcom and AMD as potential beneficiaries if NVIDIA's market power weakens. AMD traded at $575.60, down 2%, according to the report's intraday figures, which differ slightly across sessions. Shares of the GPU challenger had rallied as traders rotated toward NVIDIA's rivals after the leadership news, a shift Barron's highlighted on November 12.

Broadcom traded at $358.86, down 2%. Like AMD, it had gained after Huang's exit. The pullback unwinds part of the trade that dominated the days after the resignation.

How do the three companies compete for AI spending?

The competitive picture explains why traders rotate so quickly among these three names.

• NVIDIA sells general-purpose GPUs and full accelerated-computing platforms, from Blackwell to Vera Rubin. Its CUDA software ecosystem keeps developers and hyperscalers building on NVIDIA hardware.
• AMD pairs Instinct accelerators and Helios rack-scale systems with EPYC server processors. That combination gives cloud buyers a credible alternative to NVIDIA's stack.
• Broadcom designs custom AI accelerators, known as ASICs, for a limited set of large cloud customers. It also sells networking silicon and runs an infrastructure software segment that includes VMware.

What pressure is building in Washington?

Regulatory scrutiny of NVIDIA is widening, and that is the variable with real commercial weight. 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, over oversight of NVIDIA chip exports to China.

Reuters reported it identified more than $3 billion in Chinese computing projects built around restricted NVIDIA processors. If export controls tighten further, NVIDIA's China revenue faces direct risk. Nothing in the source quantifies that exposure beyond the Reuters figure.

Can the bounce hold?

Bulls argue NVIDIA's platform lead remains intact and the month-long decline already prices in much of the leadership turmoil. Bears hold Burry's valuation warning, a leadership transition and rising regulatory heat. The report frames both sides without declaring a winner, and the honest answer is that one morning session proves little either way.

The near-term signals to watch are concrete. A renewed climb in AMD and Broadcom shares would signal the rotation is resuming. The Washington testimony and the export review, culminating in Lutnick's December 10 appearance, will decide whether NVIDIA's China business narrows, and with it the valuation floor under the entire chip trade.