Shares of Advanced Micro Devices (AMD) surged 10% on Monday, 21 September, pushing the chipmaker’s market capitalisation past the $1 trillion mark for the first time. The stock has extended its winning streak to a fifth straight trading session.
The rally took AMD shares to another record high of $616, making the company the fourth US chipmaker to cross the $1 trillion valuation mark, after Nvidia, Broadcom and Micron.
Nvidia crossed the mark in 2023 and is now the world’s most valuable company, with a market capitalisation of more than $5 trillion.
Monday’s rally extended a strong rebound after investors had initially worried that a slowdown in artificial intelligence development could eventually weaken demand for the processors, accelerators and memory products supporting the industry.
Beyond renewed optimism around chip stocks, the decline in energy prices helped ease concerns about inflation and interest rates. The 10-year US Treasury yield also slipped below the closely watched 5% level, reducing some of the pressure that higher borrowing costs can place on growth-oriented technology stocks.
Higher oil prices can feed into inflation expectations, while elevated bond yields can make future corporate earnings less attractive and increase financing costs.
Meanwhile, AMD has accelerated its AI product launches and moved beyond selling individual chips to offering complete systems that combine processors, networking equipment and related hardware, helping it compete with Nvidia’s products.
The company is also benefiting from rising demand for central processing units used alongside graphics processors in servers handling AI inference. This has helped AMD gain market share from Intel.
AI boom expands $1 tn chip club
Growing demand for artificial intelligence and data-centre infrastructure has propelled several global technology companies into the $1 trillion market-capitalisation club. Samsung Electronics crossed the $1 trillion mark earlier in May amid the ongoing AI-driven rally in chip and memory stocks.
Similarly, SK Hynix crossed the $1 trillion milestone in May 2026, driven by soaring demand for high-bandwidth memory (HBM) chips used in AI servers. Micron Technology also joined the trillion-dollar club this year as demand for AI data-centre infrastructure accelerated sharply.
According to data compiled by LiveMint, around 14 companies had market capitalisations exceeding $1 trillion as of Monday. Apart from Saudi Aramco, Eli Lilly and Company, and Berkshire Hathaway, almost all companies in the trillion-dollar club are technology-focused businesses.
AMD shares surge over 180% in 2026
The latest rally has lifted AMD’s year-to-date gains to 184%, based on Monday’s high.
Although AMD still trails rival Nvidia by a wide margin in the graphics processing unit (GPU) market for AI data centres, investors have increasingly turned to AMD on optimism that the artificial intelligence opportunity is large enough to support multiple winners.
Expectations for the chipmaker have surged sharply in recent years. Since the artificial intelligence boom was ignited by OpenAI’s ChatGPT in 2022, Nvidia’s data-centre sales have exploded from about $15 billion annually to $194 billion last year, highlighting the scale of the AI infrastructure market that AMD is now aggressively targeting.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
