AMD joins $1 trillion club as chipmakers rally on AI-driven demand

Advanced Micro Devices briefly ​soared past $1 trillion in market ​capitalization for the first time ‌on ​Monday, joining a small group of chipmakers to reach the milestone, as investors bet on its expanding ‌role in AI computing.

The company's shares were last up 9% at $610, after surging to an all-time high of $613.92 — creating a valuation of just over $1 trillion. The milestone caps ‌a stellar rally for the Santa Clara, California-based AMD, regarded as the ‌closest rival to AI bellwether Nvidia for graphics processing units.

It becomes the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron. Nvidia crossed the mark in 2023 ⁠and ​is now the ⁠world's most valuable company, worth more than $5 trillion. AMD has accelerated its AI product launches and ⁠moved beyond selling individual chips to offering complete systems that combine processors, networking gear and ​related hardware, helping it compete with Nvidia's products.

The company is also benefiting ⁠from rising demand for central processing units used alongside graphics processors in servers handling inference. That has ⁠helped ​AMD take market share from Intel. Early last month, AMD forecast quarterly revenue above Wall Street estimates, which fell short of lofty investor expectations, sending ⁠its stock down over 7% on the day. Since then, it has leaped over ⁠26%.

Most chip ⁠stocks surged on Monday, with Intel jumping around 11%, Qualcomm rising 4.1% and the broader chips index gaining 2.6% to ‌a one-month ‌high.