AMD’s stock hit a record intraday high of $613.92 on Monday, September 21, and with it the chipmaker crossed $1 trillion in market capitalization for the first time. Quartz reported the milestone. The shares rose as much as 10% on the day, the latest leg of a five-session run.
That run added about 24% to the stock. For the year, AMD is up more than 180%.
Who else is in the club
AMD now sits with Micron, Broadcom, Taiwan Semiconductor Manufacturing Company and Nvidia among semiconductor companies valued at $1 trillion or more. Bloomberg counts 15 other publicly traded companies worldwide at that level. Nvidia is still far ahead, with a market cap of about $5.4 trillion.
What lit the fuse
Bloomberg tied part of the enthusiasm to Meta’s Muse AI Agent, which climbed to the top of Apple’s App Store free-apps chart after launching earlier in the month. Investors read that as a sign of demand for the processors that run agentic AI. Meta shares gained more than 7% Monday. Meta is also AMD’s second-biggest customer, at about 5.5% of revenue.
The earnings back up the story. First-quarter revenue came in at $10.25 billion, up 38% from a year earlier, with the data center segment at $5.78 billion, up 57%. The second quarter was stronger: $11.54 billion in revenue, up 50%, and $6.7 billion from data center, more than double the year-ago figure. CEO Lisa Su called the data center unit the central engine of revenue and profit growth. On last month’s earnings call she said the company is aiming to double data center revenue by 2027.
Nvidia’s Jensen Huang added fuel last week by forecasting that his company would ship twice as many chips in the coming year.
