AMD stock soars to new record as semiconductors bounce: Chart of the Day

Stocks in the semiconductor industry climbed to new heights on Monday, buoyed by anticipation of a state dinner between President Trump and Chinese leader Xi Jinping. The event drew numerous tech leaders, sparking optimism about the AI trade. AMD, a leading chipmaker, reached an all-time high of over $610 per share, giving it a market capitalization of $1 trillion.

ARM Holdings and Intel also experienced a surge, with shares of both companies rising by 10%. Meta's new AI agent, MUSE, contributed to a broader rally among server CPU suppliers. The semiconductor sector has seen additional positive factors, including a report that SK Hynix is considering a deal with Intel. Intel's shares have risen by over 35% in the past month, while AMD and ARM Holdings have climbed nearly 30% during the same period.

Nvidia's AI chip division has also gained more than 4% in the past month. Despite a slump in the sector after a peak in July, Wall Street remains confident, citing the demand for data center capacity, advanced logic, and memory equipment. Analyst Vivek Arya of BofA predicts a long runway for the semiconductor industry, raising his 2030 market estimate from $2.7 trillion to $3.2 trillion.