AMD joins $1 trillion club as chipmakers rally on AI-driven demand
AMD•AMD briefly tops $1 trillion market value
Sept. 21 (Reuters) - Advanced Micro Devices AMD.O 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 NVDA.O for graphics processing units.
AI demand and chip rally boost AMD and peers
It becomes the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom AVGO.O and Micron MU.O. 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 INTC.O.
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.
