AMD Shares Rise, On Track for $1 Trillion Market Cap as Chip Stocks Gain Momentum
Advanced Micro Devices Inc. (AMD) is on track to surpass a $1 trillion market valuation after its shares surged more than 10% Monday amid renewed optimism in the chipmaking sector driven by artificial intelligence demand. The company's stock, which has gained about 30% so far this month following two months of losses, could join peers like Nvidia Corp., Broadcom Inc., and Micron Technology Inc. with trillion-dollar valuations. The broader semiconductor industry is also seeing gains as investors anticipate increased demand for CPUs to power AI applications. Intel Corp. rose by up to 12%, while Arm Holdings Plc climbed nearly 14%. The Philadelphia Semiconductor Index gained over 4% and extended its winning streak to five consecutive sessions, reflecting strong investor sentiment. Meta Platforms Inc.'s Muse AI Agent reaching the top of Apple's App Store has further fueled enthusiasm for chip stocks. Meta is AMD’s second-largest customer, contributing about 5.5% of its revenue.
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Topics: AI AMD Meta Nvidia semiconductors