Advanced Micro Devices crossed $1 trillion in market capitalization for the first time on Monday, as its stock hit a file intraday high of $613.92 on the power of a five-day rally tied to AI chip demand.
AMD stock climbed as much as 10% on the day, a transfer that locations the chipmaker alongside Micron Technology, Broadcom, Taiwan Semiconductor Manufacturing Company, and Nvidia in the unique membership of semiconductor firms carrying valuations at or above $1 trillion. There are 15 other publicly traded firms worldwide valued at that stage, according to Bloomberg.
The five-session run has added about 24% to AMD stock, bringing its year-to-date gain to more than 180%. Even so, AMD stays nicely behind AI chip chief Nvidia, which carries a market cap of about $5.4 trillion.
The rally unfold across the sector on Monday. Intel shares surged up to 12% and Arm Holdings jumped as much as 14%, with the Philadelphia Semiconductor Index advancing more than 4%.
Part of the renewed investor enthusiasm for chip shares stems from the rise of Meta Platforms’ Muse AI Agent to the high of Apple’s App Store free functions chart following its launch earlier this month, according to Bloomberg. The product’s reception stoked demand for shares of firms supplying the processors needed to run agentic AI workloads. Meta stock rose more than 7% on Monday. Meta is AMD’s second-biggest buyer, accounting for about 5.5% of its income, according to Bloomberg.
AMD’s AI-driven information heart business has been the engine behind its current growth. The company reported first-quarter income of $10.25 billion, up 38% yr over yr, with its information heart section producing $5.78 billion — a 57% increase from the prior yr. AMD CEO Lisa Su said at the time that the information heart unit had become the central engine of income and revenue enlargement.
Growth continued in the second quarter. Second-quarter income reached $11.54 billion, a 50% rise in contrast with the same period last yr, while the Data Center section accounted for $6.7 billion of that whole, more than doubling its year-ago outcome. On last month’s earnings call, Lisa Su advised traders the company is concentrating on a doubling of its information heart income by 2027.
Meanwhile, the infrastructure spending wave driving chip demand continues to show little indication of dropping momentum. Nvidia CEO Jensen Huang added to the bullish sentiment last week, forecasting that his company would ship twice as many chips in the coming yr.