AMD crosses $1 trillion market cap as AI rally lifts shares

Advanced Micro Devices (AMD) briefly crossed the $1 trillion market capitalisation mark for the first time on Monday, as investors continued to bet on the chipmaker’s expanding role in artificial intelligence computing.

The milestone comes as AMD accelerates its AI product launches and expands beyond individual chips into complete systems combining processors, networking equipment and related hardware.

The company is also benefiting from rising demand for central processing units (CPUs) used alongside graphics processing units (GPUs) in servers handling AI inference, helping it gain market share from Intel.

What the data is saying

AMD shares rose 9% to $610 after reaching an all-time high of $613.92, pushing the company’s valuation above $1 trillion.

• The milestone makes AMD the fourth US chipmaker to reach the threshold, after Nvidia, Broadcom and Micron, according to Reuters.
• AMD’s latest move extends a strong rally in the stock. The shares have gained more than 26% since early August, when the company’s quarterly revenue forecast, although above Wall Street estimates, fell short of lofty investor expectations and sent the stock down more than 7% in a single session.
• The rally has also coincided with broader strength across semiconductor stocks. Intel shares gained around 11% on Monday, Qualcomm rose 4.1%, while the broader semiconductor index climbed 2.6% to a one-month high.

AMD’s expansion puts it in closer competition with Nvidia in AI infrastructure, particularly as demand grows for the computing systems required to train and run artificial intelligence models.

The company is also benefiting from demand for CPUs used alongside GPUs in AI inference servers, a market that has helped AMD take market share from Intel.

The broader AI chip market

AMD’s milestone comes amid a wider rally in AI-related stocks as investors focus on continued spending on artificial intelligence infrastructure.

Reuters reported on Monday that major US indexes gained as AI-related stocks advanced, with semiconductor companies among the stronger performers. The rally followed renewed investor focus on signs that spending on AI technology was continuing to expand.

The semiconductor sector supplies processors, GPUs, networking equipment and other infrastructure used in data centres and AI systems.

Get up to speed

The latest milestone comes amid a broader run of trillion-dollar valuations among technology companies benefiting from the artificial intelligence boom.

• Nairametrics reported in August that Amazon’s market capitalisation surpassed $3 trillion for the first time, joining a small group of technology companies to reach the valuation milestone as investors continued to assess the impact of AI on the company’s cloud and technology businesses.

Earlier in 2023, Nvidia crossed the $1 trillion valuation mark. In 2025, Nairametrics reported that the company became the first company to reach a $5 trillion valuation, driven by continued demand for its AI processors and growing influence in data centres and advanced computing.

What you should know

Investors have continued to pour money into companies linked to the artificial intelligence boom, although the sustainability of that spending has also come under scrutiny.

• Nairametrics reported earlier this month that AI-linked stocks fell sharply after technology executives raised concerns about the risks of rapid AI development.

Nvidia and AMD both declined during the sell-off, while investors also questioned the scale of spending on chips, data centres and other infrastructure supporting the industry.