AMD Briefly Crosses $1 Trillion Market Cap Amid AI-Driven Rally

On Monday, Advanced Micro Devices (AMD) saw its shares rise about 9 % to roughly US $610, reaching an intraday high of US $613.92. The surge briefly lifted the company’s market capitalization to just over US $1 trillion, making AMD the fourth U.S. chipmaker to achieve that milestone after Nvidia, Broadcom and Micron.

The Globe and Mail (Toronto)AMD joins $1 trillion club as last chipmaker to cash in on AI rally AMD crosses $1 trillion valuation as AI demand grows

The rally follows a broader AI-focused boom in semiconductor stocks. AMD’s data-center revenue jumped 107 % year-over-year to US $6.7 billion, and total Q2 revenue rose 50 % to US $11.54 billion, driven largely by AI-optimized chips. The company has been expanding from selling discrete processors to offering integrated AI systems that combine CPUs, GPUs, networking gear and related hardware, a strategy aimed at competing more directly with Nvidia’s AI accelerators. Investor optimism has been reinforced by a five-day winning streak that lifted AMD’s stock about 24 % and a year-to-date gain of roughly 180 %.

AMD crosses $1 trillion valuation as AI demand grows The Globe and Mail (Toronto)AMD joins $1 trillion club as last chipmaker to cash in on AI rally

• June 3 2024 – Lisa Su, chairwoman and CEO of AMD, delivered the opening keynote at Computex 2024 in Taipei.

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• September 21 2026 – AMD’s share price surged, briefly pushing its market value above US $1 trillion for the first time.

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• Share price increase on the day: ? 9 % to US $610 (intraday high US $613.92).

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• Market-cap breach: just over US $1 trillion.

The Globe and Mail (Toronto)

• Q2 2024 revenue: US $11.54 billion, +50 % YoY.

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• Data-center sales: US $6.7 billion, +107 % YoY.

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• Stock performance: 5-day gain ? 24 %; YTD gain > 180 %; rebound of > 26 % after a prior dip of > 7 %.

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• Peer moves: Intel up ? 11 %, Qualcomm up ? 4 %, broader chips index up ? 2.6 % to a one-month high.

AMD joins $1 trillion club as last chipmaker to cash in on AI rally

AMD’s chief executive Lisa Su said the company expects to double its data-center sales by 2027, underscoring the long-term growth outlook for AI-focused hardware. Nvidia CEO Jensen Huang projected that Nvidia will double the number of chips it sells next year, highlighting the broader industry expectation of sustained silicon demand.

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Analysts view the AI sector as the primary engine of growth in a macro environment marked by higher-for-longer interest rates and geopolitical pressures on energy markets. Thomas Hayes, chairman of Great Hill Capital, noted that “money is moving back into the AI trade,” suggesting that investors see AI hardware as a hedge against a Federal Reserve-induced slowdown. AMD’s brief entry into the trillion-dollar club signals heightened confidence that the firm can capture a larger share of AI-related data-center and server markets, challenging Nvidia’s dominance.

AMD crosses $1 trillion valuation as AI demand grows

Different outlets reported slightly varying share-price figures for the peak moment: some cited US $613.31, others US $613.92, while the closing price was reported around US $610. The precise timing of the market-cap breach (whether it occurred earlier in the trading session or at the close) is not uniformly detailed across sources.

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• “Money is moving back into the AI trade,” — Thomas Hayes, chairman at Great Hill Capital LLC in New York

Reuters