AMD, Nvidia, Broadcom, Marvell See Cheaper Option Premiums: Options Chatter
$Advanced Micro Devices (AMD.US)$, Nvidia, $Broadcom (AVGO.US)$, and $Marvell Technology (MRVL.US)$ investors and speculators are seeing relatively cheaper premiums for call and put options, setting up a lower price point in buying protection against price fluctuations for the stocks that drove some of the biggest gains in the semiconductor industry in 2025.
$NVIDIA (NVDA.US)$'s implied volatility percentile stood at 4% as of Wednesday, which means the current cost of buying put and call options is lower than it has been in 96% of the trading days in the past year. That's a development seen by some active traders as an attractive opportunity to buy options linked to a stock that is headed for a 40% advance this year.
"We believe the semiconductor industry will witness a supercycle over the next decade as content growth per device across a host of markets accelerates, due to the emergence of greater AI capabilities," CFRA analyst Angelo Zino, who has a "buy" recommendation on Nvidia, said in a note to clients Dec. 20.
$Broadcom (AVGO.US)$'s implied volatility, which measures the market's expectations of potential changes to the share price, has fallen to about 41%, below its historical volatility of 58%. The IV percentile now stood at 17%, meaning the current cost of put and call options is now lower than 83% of the trading days over the past year, exchange data tracked by moomoo showed.
JPMorgan analysts including Harlan Sur expects data center capital expenditures to surge more than 50% in 2026, providing additional upside potential for Nvidia, AMD, Broadcom and Marvell.
Current expectations imply an incremental spending of more than $150 billion next year, relative to about $140 billion of incremental AI-related spending on graphic processing units (GPUs) and application-specific integrated circuit (ASICs) baked into Wall Street's expectations, the analysts said.
$Advanced Micro Devices (AMD.US)$'s IV percentile is now at 26%, while $Marvell Technology (MRVL.US)$'s is at 16%.
"Given the strong (and urgent) demand we are seeing for AI compute, it would not surprise us to see 2026 data center capex ultimately land in the 60%+ Y/Y range," the JPMorgan analysts wrote in a note to clients in mid-December. That would take the incremental spending to more than $175 billion next year, allowing Nvidia, AMD, Broadcom and Marvell to capture "the AI revenue upside that we believe is not currently baked into Street forecasts for key AI-levered names under our coverage," they said.
Share your thoughts on Nvidia, AMD, Broadcom and Marvell in the comments section. Which of these stocks do you think will outperform in 2026? Let your voice be heard by voting below. And if you want to read more options columns like this one on the S&P 500 index options, or this one on Tesla, follow me here, where you can also find my earnings stories on some of the biggest stocks.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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75736383 : 1000
Slay2dudes : ok
102315712 : NVDA and AMD have their IV higher than their HV, but why are their IV ranking and IV% low?
106826720 : Hi