Why did AMD shares jump to a record high on Monday?

Investors were betting on AMD’s expanding role in AI computing. The stock also benefited from a broader rally in chip names as money moved back into the AI trade.

How much is AMD worth after joining the $1 trillion club?

AMD passed $1 trillion in market capitalization for the first time and became the fourth US chipmaker to reach that level. Its shares were last up 9.6 percent at $613.31.

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

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Summary

Advanced Micro Devices passed $1 trillion in market capitalization on Monday, joining a small group of chipmakers as investors bet on its AI computing role. AMD shares rose 9.6 percent to a record $613.31. The rally came as most chip stocks advanced and the broader chips index gained 2.7 percent. AMD has also widened its AI product lineup and moved from selling chips to complete systems.

Key Facts

AMD became the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron.
Nvidia crossed the $1 trillion mark in 2023 and is now valued at more than $5 trillion.
AMD stock has surged 185 percent in 2026, far outpacing the Nasdaq's 15.8 percent gain.
AMD was trading at about 41 times its 12-month forward earnings, below its 10-year average of 44 and above Nvidia's recent 16.3 times.
Intel rose around 11.8 percent and Qualcomm gained 4.5 percent as most chip stocks rallied on Monday.

By Reuters

Published Sep 22, 2026 12:39 am KST

Visitors arrive at Advanced Micro Devices (AMD) kiosk during the Semicon India 2026, an annual semiconductor conference, in New Delhi, India, Sept. 17. Reuters-Yonhap

Advanced Micro Devices soared past $1 trillion in market capitalization for the first time on Monday, joining a small group of chipmakers to reach the milestone, as investors bet on its expanding role in AI computing.

AMD shares were last up 9.6 percent at $613.31, scaling a record high. The milestone caps a stellar rally for the Santa Clara, California-based company, regarded as the closest rival to AI bellwether Nvidia for graphics processing units.

It becomes only the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron. Nvidia crossed the mark in 2023 and is now the world's most valuable company, worth more than $5 trillion.

"Money is moving back into the AI trade," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.

Enthusiasm for chipmakers cooled in recent months as markets scrutinized AI spending by hyperscalers. Higher oil prices linked to the US-Iran conflict and expectations of higher-for-longer interest rates added to the pressure.

But now investors believe AI is the only area that can work in a Federal Reserve-induced economic slowdown, Hayes said. "AMD is representative of that."

Most chip stocks surged on Monday, with AMD-rival Intel jumping around 11.8 percent and Qualcomm rising 4.5 percent. The broader chips index gained 2.7 percent to an over one-month high.

Beyond chips

AMD has accelerated AI product launches and moved beyond selling individual chips to offering complete systems — combining processors, networking gear and related hardware — to compete with Nvidia.

Growing demand for central processing units used alongside graphics processors in servers handling inference, on the other hand, has helped it take market share from Intel.

AMD forecast quarterly revenue above Wall Street estimates last month, yet fell short of lofty investor expectations.

The stock's 185 percent surge in 2026, however, has far outpaced the 15.8 percent gain in the tech-heavy Nasdaq and placed it among the top S&P 500 performers.

AMD last traded at around 41 times its 12-month forward earnings — below its 10-year average of 44 but much higher than Nvidia's recent trades at 16.3 times forward earnings.

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