AI Hedge Fund Storms Back After Massive Losses, Spending Hundreds of Millions on AMD, SanDisk Call Options — BigGo Finance
Hedge fund Situational Awareness, which suffered massive losses in July, has resumed trading by spending hundreds of millions on call options for AMD, SanDisk, and other AI-related companies. According to Nomura, a large investor paid at least $315 million in premiums for options on these and other assets. The fund's founder, Leopold Aschenbrenner, previously achieved high returns with aggressive AI supply chain bets but faced a liquidity crisis in July.
How this was made
The 30-second read
Why it matters
The disclosed option premiums represent a fresh, sizable bet on AI supply‑chain equities, likely to drive short‑term price moves and sector sentiment.
Market read
First‑time disclosure of a multi‑hundred‑million‑dollar AI option bet, creating immediate upside pressure on listed AI supply‑chain stocks.
What to watch
Fund’s capital source and leverage status remain unclear, adding risk to the implied bullishness.
Background
Situational Awareness, an AI‑focused hedge fund, suffered a July liquidity crisis and is now re‑entering the market with massive call option purchases across AI‑related stocks.
Ticker impact
Fund purchased large call options on AMD, a key AI chip maker, as part of a multi‑billion‑dollar AI supply‑chain bet.
Short‑term bullish pressure on AMD shares.
New large‑scale option buying signals renewed exposure; market reacts positively.
Fund bought call options on SanDisk (SNDK.US), one of its largest prior holdings, spending hundreds of millions on premiums.
Modest upside; stock already up >3% on the news.
Large option exposure indicates confidence in near‑term storage demand.
Bloom Energy call options were included in the fund’s AI‑infrastructure positioning, with premiums in the hundreds of millions.
Short‑term rally expected; stock jumped 6.8% on the story.
New sizable option bets act as a catalyst for price movement.
SK Hynix call options were part of the fund’s AI memory‑chip exposure, disclosed for the first time.
Limited immediate impact; no immediate price move reported.
Large option exposure may influence Korean market sentiment but effect is indirect.
Intel was listed among the underlying assets for the fund’s $315 million option premium trade.
Minor upside pressure expected.
Inclusion in a high‑profile fund’s trade adds a modest bullish signal.
Market effects
Reinforces bullish bias toward AI chip, memory and data‑center power sectors.
U.S. and Asian AI‑related equities may see short‑term buying pressure.
Highlights renewed capital flow into the global AI supply chain.
Counterpoint
Large option bets could backfire if AI demand stalls, leading to heightened volatility.
Key entities
- Hedge FundSituational Awareness
AI‑focused fund re‑entering markets with large option positions.
- BrokerageNomura Securities
Provided data on the $315 million option premium trade.
