AMD joins US$1tril club as chipmakers rally on AI-driven demand

Advanced Micro Devices (AMD) has briefly surpassed a US$1 trillion market capitalisation, joining the exclusive club of US chipmakers that have reached this milestone. This achievement comes as investors anticipate AMD's growing role in AI computing. The company's shares surged 9%, reaching a high of US$613.92 and valuing the firm at over US$1 trillion.

AMD, known for its graphics processing units (GPUs), is now the closest rival to Nvidia, the leading AI bellwether. The Santa Clara, California-based company's valuation marks a significant milestone for the firm, which has expanded its product offerings to include complete systems combining processors, networking gear, and related hardware.

AMD's success in AI product launches and its growing demand for central processing units used alongside graphics processors in servers have contributed to its competitive advantage over Intel. Despite a brief setback in early March when AMD forecasted quarterly revenue above Wall Street estimates, which fell short of investor expectations, the company's stock has since recovered, surging over 26% since then.

On Monday, AMD's stock experienced a 26% increase, outperforming most other chip stocks, with Intel up 11%, Qualcomm rising 4.1%, and the broader chip index gaining 2.6%, marking a one-month high.