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.

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The decision marks a departure from standard industry practice, where AI developers typically share pre-release versions of major models with leading chipmakers to ensure optimal performance on widely used hardware.

Instead, DeepSeek granted early access to domestic suppliers, including Huawei Technologies, the sources said. The move gives Chinese chipmakers several weeks to optimise the software for their processors ahead of the model’s expected release.

Nvidia and AMD declined to comment, while DeepSeek and Huawei did not respond to requests for comment.

The reasons behind the decision were not immediately clear. However, industry analysts suggest the move could align with broader Chinese government efforts to reduce reliance on U.S. semiconductor technology.

The development comes amid heightened scrutiny over U.S. export controls. A senior Trump administration official recently told Reuters that DeepSeek’s latest AI model was trained using Nvidia’s most advanced Blackwell chips in mainland China, a potential violation of U.S. export restrictions. U.S. policy currently bars shipments of certain advanced AI chips to China.

DeepSeek’s models have been downloaded more than 75 million times on the open-source platform Hugging Face since the company gained global attention in early 2025. Chinese open-source AI models have seen rapid adoption, surpassing downloads of models from other countries on the platform over the past year.

U.S. authorities previously allowed Nvidia’s H20 and AMD’s MI308 chips, designed for AI inference, to resume shipments to China, though licenses for more advanced processors remain restricted. It is unclear whether DeepSeek has obtained approval to purchase those chips.

Analysts say the immediate commercial impact on Nvidia and AMD may be limited, as DeepSeek’s models primarily serve as benchmarks rather than enterprise deployment standards. However, the decision underscores growing technological and geopolitical tensions as Chinese AI firms prepare to release new models in the coming months.

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The losses — spanning Nvidia, Microsoft, Meta, Broadcom, Oracle, TSMC, AMD, Palantir, Apple and ASML — rattled markets globally, given the companies’ central role in the AI hardware and software supply chain. The sell-off erased an amount nearly equivalent to the entire Spanish stock market and almost half the market capitalisation of Canada.

Nvidia saw the steepest decline, shedding roughly $459 billion, followed by Microsoft ($333 billion) and Meta ($321 billion). Broadcom lost an estimated $173 billion, while Oracle, TSMC, AMD, Palantir, Apple and ASML recorded declines ranging from $21 billion to $102 billion.

The downturn came amid a broader tech-sector slump as investors reassessed whether the nearly two-year surge in AI-linked valuations had overshot fundamentals. Analysts pointed to a series of catalysts behind the sudden reversal. Alphabet’s reported push to supply its home-grown TPUs directly to major customers, including Meta, intensified concerns about rising competition in the AI chip market. Washington’s decision to further tighten export controls on advanced processors bound for China added additional pressure on chipmakers and manufacturing partners.

The sell-off was further fuelled by profit-taking after significant gains, as well as renewed questions about whether massive AI-related capital expenditure will translate into near-term earnings. Some AI software firms, including Palantir, had recently signalled slower-than-expected contract growth, adding to investor unease.

Despite the declines, all ten companies remain among the world’s most valuable corporations, reflecting the continued strategic importance of AI computing infrastructure. The episode underscored, however, how concentrated global equity markets have become; with mega-cap AI stocks now representing an outsized share of major indices, volatility in a handful of companies can move markets worldwide.

Within weeks of the sell-off, Nvidia’s stronger-than-expected quarterly results helped stabilise sentiment, though analysts say the correction served as an early reminder of the risks that accompany rapid technological transitions and elevated valuations in the AI sector.

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