Nvidia, Broadcom, AMD, Arm, TSMC See Millions of Dollars in Bullish Option Block Trades: Options Chatter
$NVIDIA (NVDA.US)$, Broadcom, $Advanced Micro Devices (AMD.US)$, $Arm Holdings (ARM.US)$ and $Taiwan Semiconductor (TSM.US)$ saw millions of dollars in bullish option block trades Friday amid the latest sign of sustained robust demand for chips that power artificial intelligence.
$Broadcom (AVGO.US)$ forecast AI semiconductor revenue could climb 60% to $5.1 billion in the three months ending on Aug. 3. That would be the chip giant’s 10th straight quarterly growth, according to its financial results released after the market closed Thursday.
“We do anticipate now our fiscal 2025 growth rate of AI semiconductor revenue to sustain into fiscal 2026,” Broadcom CEO Hock E. Tan said in the company’s earnings call with analysts late Thursday.
While that wasn’t enough to push up shares that have already soared 79% over the past year, it helped strengthen the bull case for the semiconductor industry.
Nvidia topped the list of bullish option block trades with an active buyer paying a $52.27 million premium for call options, followed by a $9.9 million for Arm call options. Even Broadcom, which saw shares slip Friday, attracted a $4.12 million bullish call option trade.
Broadcom's optimistic outlook comes as the company reported a 20% jump in revenue to $15 billion for the fiscal second quarter that ended May 4. That slightly exceeded the average analyst estimate of $14.96 billion, according to Bloomberg consensus.
More important than the second quarter results and the third quarter guidance “was the indication that “2026 AI sales may grow at a similar rate to 2025, estimated at mid-50%, driven by stronger inference demand as hyperscalers ramp up XPU deployments” into the second half of 2026, Bloomberg Intelligence analyst Oscar Hernandez Tejada wrote in a note.
That implies an upside potential to consensus of about $4 billion-plus, or 15%, he said.
More than 478,400 Broadcom call and put options changed hands as of 1:07 p.m. in New York. That's more than double the 20-day average volume of 212,574 contracts, according to data compiled by Bloomberg. Call options that give the holder the right to buy Broadcom shares at $260 by market close today attracted the heaviest volume as the stock price fall below that strike price, prompting sellers to rush to the exit before the contract expires worthless.
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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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