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Nvidia rebounds, gaining banks bullish: Is now a good time to buy?
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Nvidia, Broadcom, AMD, Arm Attract Bullish Option Positions Amid Strong AI Demand

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Luzi Ann Santos joined discussion · Aug 9 13:56
Financial institutions are placing millions of dollars in bullish option positions in $NVIDIA (NVDA.US)$, $Broadcom (AVGO.US)$, $Advanced Micro Devices (AMD.US)$ and $Arm Holdings (ARM.US)$ as capital spending on chips that power artificial intelligence applications remain strong.
The momentum that's pushing up demand for central processing units (CPU), graphic processing unit (GPUs) and networking chips used in artificial intelligence (AI) servers could last through 2024, even amid slowing broader networking spending, according to Bloomberg Intelligence's survey of chief information officers.
"High core-count CPUs and AI-server GPUS are likely to get a significant portion" of the capital expenses in AI this year, with top cloud and hyper-scaler spending climbing more than 40%, Kunjan Sobhani and Oscar Hernandez Tejada, analysts at Bloomberg Intelligence, wrote in a note dated Friday.
Source: moomoo mobile app
Source: moomoo mobile app
(To see the latest unusual trading activities in the options market, click here.)
Among the biggest bullish positions taken Friday was a block trade involving a buyer paying a $3.3 million premium for call options that give the holder the right to purchase 200,000 Nvidia shares at $120 each by June 20, 2025. That strike price is about 14% higher than the current stock price of $104.90, which may signal optimism that the chip titan could resume its rally towards a record.
"Nvidia may keep its stronghold," the Bloomberg Intelligence analysts said. "Broader adoption of Ethernet and rising competition are likely to drive market-share shifts, and Broadcom, ARM, and Advanced Micro Devices could gain."
Source: moomoo PC app
Source: moomoo PC app
In the case of Broadcom, a financial institution sold put options that give the holder the right to sell 1.06 million shares at $153 each by the end of next week. Investors and speculators typically sell put options when they expect the value of the stock to rise above the strike price. That could signal optimism for further gains for Broadcom as the stock price rose 2.1% to $148.75 as of 2:34 p.m.  
(To see Broadcom's options chain, click here.)
Source: moomoo PC app
Source: moomoo PC app
AMD also saw a big block of bullish trade in call options that give the holder the right to buy 118,000 shares of the chipmaker at $135 in 861 days. The buyer paid a $5.32 million premium for those options. The stock traded at $134.78.
Source: moomoo mobile app
Source: moomoo mobile app
(To see AMD's options chain, click here.)
"Given the largest cost of an AI server is from GPU/accelerators and networking gear, this is likely to drive sustained momentum for GPU providers Nvidia and AMD and networking-chip providers Broadcom and $Marvell Technology (MRVL.US)$ ," the analysts said.
In the case of Arm Holdings, a block trade for call options giving the holder the right to buy 224,000 shares at $115 was posted at 1:21:58 p.m. Friday. The buyer paid an $11.92 million for those options expiring on Dec. 18, 2026. That could be seen as a sign of optimism for a rebound for that's down 0.9% at $117.30.
Source: moomoo mobile app
Source: moomoo mobile app
"The high score of ARM-based CPUs (47%) highlights the company's share advances in a large and fast-growing server market," the BI analysts said. " Broader adoption of Ethernet and rising competition are likely to drive market-share shifts, and Broadcom, ARM and Advanced Micro Devices could gain."
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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