Advanced Micro Devices (AMD) briefly crossed the $1 trillion market capitalisation threshold for the first time on Monday, as investors continued to bet on the chipmaker’s growing role in the artificial intelligence (AI) infrastructure market.
AMD shares rose about 9 per cent to $610, after touching an all-time high of $613.92, pushing the company’s valuation above the trillion-dollar mark.
The milestone reflects the strength of AMD’s recent rally as the company expands its AI portfolio and competes more directly with industry leader Nvidia in the fast-growing market for AI computing infrastructure.
AMD has been broadening its offering beyond individual processors to complete computing systems that combine processors, networking equipment and other hardware required by data centres.
The company is also benefiting from rising demand for central processing units (CPUs) used alongside graphics processing units (GPUs) in servers that run AI inference workloads. This has helped AMD gain market share from Intel.
According to Reuters, AMD is now the fourth US chipmaker to reach a $1 trillion market valuation, following Nvidia, Broadcom and Micron.
The latest milestone extends a strong run for AMD shares. The stock has gained more than 26% since early August, when the company reported a quarterly revenue forecast that exceeded Wall Street expectations but fell short of the high expectations investors had built into the stock.
The disappointing outlook triggered a more than 7 per cent single-day decline in AMD shares at the time.
The stock has since rebounded sharply as investors refocused on the company’s AI opportunities and the broader strength of semiconductor demand.
AMD’s gains came amid a wider rally in semiconductor stocks on Monday.
Intel shares rose about 11 per cent, while Qualcomm gained 4.1 per cent. The broader semiconductor index climbed 2.6% to a one-month high, reflecting renewed investor appetite for companies exposed to AI infrastructure spending.
The rally comes as investors continue to assess whether spending on AI chips, data centres and related infrastructure can maintain its rapid pace.
AMD is positioning itself to capture a larger share of that spending by supplying both the processors and broader computing infrastructure needed to train and run AI models.
AMD’s expansion into complete AI systems puts it in increasingly direct competition with Nvidia, whose GPUs remain central to much of the industry’s AI computing infrastructure.
However, the market opportunity extends beyond GPUs.
AI inference, the process of using trained models to generate responses and perform tasks, is driving demand for CPUs that work alongside GPUs in data-centre systems.
AMD has benefited from this demand as cloud providers and other large technology companies expand their AI infrastructure.
