Advanced Micro Devices (AMD) surpassed a $1 trillion market capitalization for the first time on Monday, with shares reaching a record intraday high of $613.92 during a five-day rally driven by surging AI chip demand.
The stock’s gains placed AMD among an elite group of semiconductor firms—including Micron Technology, Broadcom, TSMC, and Nvidia—with valuations at or above $1 trillion. Bloomberg reports that only 15 publicly traded companies worldwide currently carry market caps at that threshold.
Over the five-session run, AMD shares climbed roughly 24%, pushing year-to-date gains beyond 180%. Still, the company trails Nvidia significantly, which holds a market cap of approximately $5.4 trillion.
The rally extended across the broader chip sector Monday. Intel shares jumped as much as 12%, Arm Holdings rose up to 14%, and the Philadelphia Semiconductor Index gained more than 4%.
Renewed investor enthusiasm for chip stocks was partly fueled by the rise of Meta Platforms’ Muse AI Agent, which climbed to the top of Apple’s free App Store chart following its launch earlier this month, according to Bloomberg. The strong reception boosted demand for processors needed to run agentic AI workloads. Meta shares rose more than 7% Monday, and the social media giant is AMD’s second-largest customer, accounting for roughly 5.5% of revenue.
AMD’s AI-focused data center business has been the primary growth driver. First-quarter revenue hit $10.25 billion, up 38% year over year, with the data center segment contributing $5.78 billion—a 57% increase from the prior year. CEO Lisa Su described the unit as the central engine of revenue and profit expansion.
Growth accelerated in the second quarter, with revenue reaching $11.54 billion, up 50% year over year. The data center segment accounted for $6.7 billion, more than doubling its year-ago result. On last month’s earnings call, Su told investors the company aims to double data center revenue by 2027.
The infrastructure spending wave underpinning chip demand shows little sign of slowing. Nvidia CEO Jensen Huang reinforced bullish sentiment last week, forecasting that his company will ship twice as many chips in the coming year.