On Thursday, AMD and Broadcom were the market's favorite answer to the question of who benefits from Nvidia's leadership crisis. On Friday, November 13, 2026, that answer was being repriced.

By about 10:15 a.m. ET, Yahoo Finance quotes showed AMD at about $532, down roughly 9.1% from Thursday's $585.30 close, and Broadcom (AVGO) at about $343.60, down about 5.7% from $364.36. Nvidia itself was not the winner of the reversal: after trading higher premarket, it was down about 3.4% at roughly $160.50. The iShares Semiconductor ETF (SOXX) was about 5% lower.

We covered the rally in both stocks on Thursday and Nvidia's repricing after Huang resigned. This piece follows what happened next.

Redburn's Case Against Broadcom's AI Earnings

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Before the open, Rothschild & Co Redburn analyst Mike Harrison downgraded Broadcom to Neutral from Buy and cut his price target to $398 from $595, according to Investing.com. CNBC said the stock was down 5% after the call.

Harrison's argument was about the quality of earnings rather than their size. Broadcom's guidance implies it trades at about 11 times fiscal 2028 earnings, he wrote, but that "counts for little when both the quality and the durability of earnings are under scrutiny." His main points, per Investing.com:

  • Customer concentration. Up to 15 gigawatts of compute for Anthropic and OpenAI underpins Broadcom's $230 billion fiscal 2028 AI revenue guidance. Those labs "need to establish sustained primacy over open models and become self-financing in short order."
  • Credit dependence. Both labs rely heavily on credit markets. Investment-grade ratings would help and could reduce the need for Broadcom's backstops.
  • Custom-chip durability. Google's efforts to diversify away from Broadcom are "an important analogue" for whether other big customers eventually follow.

    • Redburn also dropped its discounted-cash-flow approach for a sum-of-the-parts target. A separate Investing.com note pointed out that the stock had risen about 24% over the prior week.

    AMD Had Further to Fall

    AMD had no comparable company-specific headline. Investing.com described its drop as "a swift reversal of the AI chip rotation trade" after a five-session gain of nearly 45%. It also cited valuation (roughly 125 times trailing earnings), weaker third-quarter free cash flow alongside inventory of $11.5 billion, and reports that Michael Burry had added to Nasdaq 100 puts.

    CNBC put the week in context: before Friday, Nvidia was down 11% for the week while AMD and Broadcom were up 30% and 24%. Yahoo Finance reported that Nvidia slipped back below a $4 trillion market value on Friday.

    | Ticker | Thu close | ~10:15 a.m. ET | Change | Session range so far | AMD$585.30~$532~-9.1%$528.38 to $571.13 AVGO$364.36~$343.60~-5.7%$342.52 to $358.47 NVDA$166.19~$160.50~-3.4%$160.23 to $170.00

    Every stock in the table was trading close to its session low, not bouncing back.

    Thursday's Upside Calls, One Day Later

    Thursday's flow was dominated by short-dated calls. AMD's November 13 $600 calls traded about 37,800 contracts on Thursday at around $5.90 to $6.30. Friday morning they were quoted at $0.05 to $0.06 on Yahoo's AMD chain, with about 8,950 more contracts already traded.

    Broadcom's November 13 $370 and $365 calls, each of which traded about 9,500 contracts or more on Thursday, were bid at only a few cents.

    This is the risk of buying same-day or next-day options after a big move. A call bought for about $6 needed AMD to stay above about $606 at expiration just to break even. One down day wiped out almost all of the premium. Some of those calls may have been sold rather than bought. Friday's open interest of about 8,500 is far below Thursday's volume, which suggests many positions were closed the same day. Volume alone doesn't show who paid and who collected.

    Next Week's Straddles Barely Got Cheaper

    Nvidia reports on Tuesday, November 17, and that date falls inside next Friday's expiration for all three names. Midpoint prices from Yahoo around 10:15 a.m. ET:

    ContractStraddle midpointAs % of priceThursday's equivalent (from our earlier note) AVGO Nov 20 $345~$23.40~6.8%~6.9% ($365 strike) AMD Nov 20 $530~$49.55~9.3%~8.9% ($585 strike) AVGO Nov 13 $345 (expires today)~$5.96~1.7%n/a | AMD Nov 13 $530 (expires today) | ~$17.15 | ~3.2% | n/a |

    Even after a 9% drop, the AMD Nov 20 straddle costs a slightly larger share of the stock price than it did on Thursday. The options market is still pricing about a 9% move for AMD by next Friday and nearly 7% for Broadcom. That premium reflects Nvidia's earnings, the possibility that the rotation reverses again, and the volatility of the past week.

    Positioning has also shifted toward protection. Broadcom's Nov 20 $340 puts showed open interest of about 16,000 contracts and the $330 puts about 11,500, compared with only a few thousand at most nearby calls. AMD's Nov 20 $500 puts traded about 1,300 contracts early against open interest of roughly 8,150.

    Points to Weigh Before Trading a Reversal

    These are educational observations, not recommendations:

  • Sympathy moves cut both ways. AMD and Broadcom rallied on news about another company. When the narrative cools, there is no earnings report or guidance change to support the price.
  • Analyst calls land harder after a run. A downgrade following a 24% weekly gain can trigger profit-taking that a downgrade after a selloff might not.
  • Short-dated premium decays quickly. As Thursday's calls show, an option expiring in a day or two needs the move to happen right away.
  • Event risk is still ahead. Anything bought or sold for next week carries Nvidia's earnings. A straddle seller is exposed to a gap in either direction, and a buyer can lose much of the premium if the reaction is muted.
  • Assignment. AMD and AVGO options are American-style and settle into shares, so short in-the-money options can be assigned early, especially around ex-dividend dates.

    • Our implied volatility guide explains how event premium works, and the OCC options disclosure document covers the risks of standardized options.

    Sources

  • Investing.com: Redburn lowers Broadcom to Neutral on limited re-rating potential
  • Investing.com: Rothschild downgrades Broadcom stock rating on AI financing concerns
  • CNBC: Stocks moving the most today, Nov 13, 2026
  • Investing.com: Why is Advanced Micro Devices stock sliding today?
  • CNBC: Nvidia's turmoil is prompting a rotation across chip stocks
  • Yahoo Finance: Nvidia stock slips as investors digest CEO exit
  • Yahoo Finance: AVGO options
  • Yahoo Finance: AMD options
  • Yahoo Finance: NVDA options

    • *By the OptionsPilot Editorial Team. Published November 13, 2026, 7:18 AM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*