AMD's market capitalization exceeded $1 trillion for the first time

During trading on September 21, Advanced Micro Devices’ (AMD) market capitalization briefly exceeded $1 trillion for the first time. The company’s stock reached a record high of $615.99 at its peak, rising 10%.

AMD has become the fourth U.S. chipmaker to surpass the $1 trillion mark in market capitalization—following Nvidia, Broadcom, and Micron, Reuters notes. Nvidia crossed that threshold back in 2023 and remains the world’s most valuable publicly traded company, with a market capitalization of more than $5 trillion.

AMD, which the market considers Nvidia’s main competitor in the graphics processor segment, has accelerated the launch of artificial intelligence products, the agency reports. The company has shifted from selling individual chips to supplying complete systems that combine processors, networking equipment, and related hardware, which helps it compete with Nvidia’s solutions. An additional driver has been the growing demand for central processing units, which are used alongside graphics accelerators in servers for inference (the deployment of AI models): in this market, AMD is taking market share away from Intel.

In early August, AMD forecast quarterly revenue that exceeded Wall Street’s expectations. However, this forecast failed to meet investors’ high expectations, and the stock fell more than 7% that day. Since then, the company’s stock has risen by more than 26%.

On Monday, nearly all chipmakers' stocks rose. Intel shares jumped about 13%, Qualcomm shares rose 6.4%, and the broader semiconductor sector index gained 3.3%.

This article was AI-translated and verified by a human editor