The Philadelphia Semiconductor index rose about 3.6% on the session to about a one-month high.
Biggest SOX winners were Arm Holdings and Intel, jumping nearly 15% and 14%, respectively.
Nvidia was up 1%, while Qualcomm shares gained 8% on Monday.
Valuation and analyst backdrop
AMD stock recently traded at 41 times expected earnings versus its five-year average of 31x, according to LSEG data.
The average rating of 55 analysts covering the stock is "buy"; the median price target is $600, up from $479 on June 21.
With Monday's move, the stock is up about 185% year to date.
AMD hits record high and crosses $1 trillion market value
Advanced Micro Devices shares rose to after hitting a new record high, and its market capitalization crossed the threshold for the first time on Monday amid a broader advance in chip stocks on AI-driven demand.
AMD becomes the fourth-largest U.S. chipmaker to top the $1 trillion mark; the milestone caps a stellar rally for the company, regarded as the closest rival to AI bellwether Nvidia for graphics processing units.
AMD•
