Advanced Micro Devices has crossed the $1 trillion market capitalisation mark for the first time, extending a powerful rally that has made the chipmaker one of the biggest beneficiaries of the global race to build artificial intelligence infrastructure.
AMD shares rose 9.6% to $613.31 on Monday, reaching a record high and pushing the company’s valuation beyond the landmark threshold.
The Santa Clara, California-based company is now only the fourth U.S. chipmaker to surpass $1 trillion in market value, joining Nvidia, Broadcom and Micron.
Nvidia crossed the milestone in 2023 and has since grown into the world’s most valuable company, with a market value exceeding $5 trillion.
AMD’s latest surge reflects growing investor confidence in its expanding role in AI computing and its position as Nvidia’s closest major rival in graphics processing units.
“Money is moving back into the AI trade,” said Thomas Hayes, chairman of New York-based Great Hill Capital.
Investor enthusiasm for semiconductor companies had weakened in recent months as markets questioned whether massive spending on AI infrastructure by technology giants could continue at its current pace.
Higher oil prices linked to the U.S.-Iran conflict and expectations that interest rates could remain elevated for longer also weighed on technology stocks.
But renewed demand for AI-related companies has helped reverse some of that pressure. Hayes said investors increasingly view AI as one of the areas capable of continuing to attract spending even if the wider economy slows because of Federal Reserve policy.
AMD has strengthened its position in the AI market by expanding beyond individual processors and graphics chips to offer complete computing systems that combine processors, networking equipment and other hardware.
The company is also benefiting from demand for central processing units used alongside graphics processors in data centres, particularly for AI inference workloads. That has helped AMD gain ground against Intel in the server market.
AMD’s rapid rise has been reflected in its stock performance. Its shares have gained about 185% in 2026, substantially outperforming the technology-heavy Nasdaq, which has risen 15.8% over the same period.
The rally has also lifted other chipmakers. Intel shares jumped about 11.8% on Monday, while Qualcomm gained 4.5%. The broader semiconductor index rose 2.7% to its highest level in more than a month.
AMD forecast quarterly revenue above Wall Street expectations in August, supported by demand from AI and data-centre customers, although the outlook fell short of some particularly high investor expectations.
Despite the company’s strong performance, its valuation remains a key consideration for investors. AMD was recently trading at about 41 times its expected earnings over the next 12 months, below its 10-year average of 44 times but substantially above Nvidia’s recent multiple of about 16.3 times.
The $1 trillion milestone nevertheless underscores how dramatically the AI boom has reshaped the semiconductor industry, with investors increasingly valuing companies based on their ability to supply the computing infrastructure required to develop and operate increasingly sophisticated AI systems.
