Burry trimmed 25% of his SMH puts last week but retained substantial bearish semiconductor exposure.
- BofA said Nvidia’s uncertainty could benefit AMD and other rivals, but broader China scrutiny could increase sector volatility.
- AMD’s EPYC processors power host servers for Google Cloud’s TPU 8tx, expanding its role in AI infrastructure.
- AMD expects revenue growth above 80% in 2027, with server revenue doubling and data-center AI growing faster.
Shares of Advanced Micro Devices, Inc. (AMD) recorded their best session in six months on Monday as investors welcomed fresh support for its AI business, while Michael Burry said he would sit out the trade around Nvidia headlines.
AMD stock jumped 13% to $508.58 on Monday.
Burry Sits Out AMD’s Headline Rally
“AMD up on NVDA headlines but I won’t trade that,” Burry wrote in the chat on his Cassandra Unchained Substack, distancing himself from the latest rally in the chipmaker. His caution extends to the broader AI chip industry. In June, he disclosed shorting the iShares Semiconductor ETF (SOXX), citing stretched valuations and concerns about the sustainability of AI infrastructure spending.
Last month, Burry consolidated most bearish exposure into Nasdaq-100 and VanEck Semiconductor ETF puts. The NDX contracts were due to expire in April 2027 and the SMH contracts in June 2027, both 20% out of the money when disclosed. SMH included AMD and Nvidia.
Burry has also criticized Nvidia’s competitive tactics. In March, he alleged that Nvidia intervened to keep AMD out of an Oracle-related AI infrastructure deal. His interest in AMD nevertheless remained price-dependent. He said last month: “If $AMD were cheaper, it’d be a buy for the treble damages awarded if/when $NVDA is finally prosecuted under antitrust law.”
Last week, Burry disclosed selling 25% of his SMH puts while retaining a substantial position. “The SMH put positions even after the sale however have become very large positions,” he said.
He also outlined plans to retain puts on Oracle, Palantir, QQQ and Caterpillar. In a subsequent update, he disclosed cutting the Caterpillar puts by 75% after their value roughly quadrupled. Burry was also selectively buying last week, increasing his MercadoLibre position by 50% at prices below $1,500 per share.
Wall Street Backs AMD As Nvidia Faces Scrutiny
Meanwhile, Wall Street remained optimistic on AMD. Oppenheimer upgraded the stock to ‘Outperform’ from ‘Perform’ with a $600 target, implying 18% upside from current levels.
“AMD’s server CPU and DCAI success is undeniable,” the firm said. It forecasts 135% data-center revenue growth in 2027, with the segment contributing 85% of sales, and sees favorable pricing in next-gen. deals.
Freedom Broker also maintained its ‘Buy’ rating and raised its target to $620 from $460, implying 21.9% upside. The brokerage said Q3 marked AMD’s transition from gaining CPU market share to supplying AI infrastructure at scale.
The bullish calls came as Nvidia (NVDA) fell 4% on Monday amid a board probe into CEO Jensen Huang’s alleged affair with a woman reportedly linked to Chinese intelligence. Huang admitted infidelity and pledged to cooperate. Nvidia said it had no reason to believe company secrets or national security had been compromised.
BofA called the development a “new overhang, not yet an earnings event.” The firm said AMD, Broadcom (AVGO) and Marvell (MRVL) could benefit from distractions at Nvidia, although wider scrutiny could increase volatility for U.S. suppliers selling to China. BofA maintained its ‘Buy’ rating and $350 Nvidia target, implying 96% upside from last close.
AMD’s AI Ambitions Extend Beyond GPUs
AMD’s fifth-generation EPYC processors power host servers for Google Cloud’s TPU 8tx, helping protect sensitive AI data and model weights during processing. “EPYC’s leadership performance and mature ecosystem, proven at scale, have made it the host CPU of choice for custom accelerators,” CEO Lisa Su said during the company’s recent earnings call last week.
AMD said EPYC serves more than 10 leading hyperscalers and frontier AI labs, supporting its broader growth ambitions.
“Based on our current visibility, we now expect revenue to grow more than 80% in 2027, which is more than twice the long-term financial model we outlined at our Financial Analyst Day last November,” Su said.
AMD expects server revenue to double in 2027, with data-center AI growing faster. Data Center could contribute over 80% of company sales next year, while AI revenue within the segment is expected to overtake server CPU revenue in Q4 2026.
Early Helios customers include Anthropic, Meta, Microsoft, OpenAI and Oracle. Demand remains ahead of supply, even as AMD plans for a double-digit decline in PC market unit shipments next year.
How Do Retail Traders Feel About AMD?
On Stocktwits, retail sentiment for AMD jumped to ‘extremely bullish’ from ‘bullish’ levels amid a 277% jump in 24-hour message volumes.
One user said, “$AMD Current pricing doesn’t make sense given the artificial drop before midterms. We first need a bounce back to $550-$600, then price in Q3 earnings and Q4/2027 guidance. Next stop: $800+”
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Another user said, “I truly belive this incident will bring some companies to move some of their business from. Nvda to AMD. This is another pivotal moment for AMD to become the market leader in Semis!”
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AMD stock has risen 137% year-to-date.
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