Capitalization of chip maker AMD for the first time exceeded $ 1 trillion

On Monday, September 21, the market capitalization of the American chipmaker Advanced Micro Devices (AMD) rose above the $ 1 trillion mark for the first time. Shares reached a historic high amid rising demand for artificial intelligence (AI) technology, Reuters writes.

At the peak of the paper rose by 10%, to $615.99 per share, the market capitalization of the company exceeded $ 1 trillion. By 18:31 MSK, growth slowed down: the shares added 9.4% and traded at $612.15 per share.

AMD is the fourth U.S. chipmaker to break the $1 trillion mark, after Nvidia, Broadcom and Micron. Nvidia reached this level in 2023 and is now the most valuable company in the world with a capitalization of more than $ 5 trillion.

The company has accelerated the launch of AI products and moved from selling individual chips to end-to-end solutions that include processors, networking hardware and other components. This helps AMD compete with Nvidia.

In addition, AMD also benefits from the growing demand for CPUs, which are used alongside GPUs in servers handling inferencing tasks. With their help, AMD won market share from Intel.

Inference is the stage at which an artificial intelligence system applies an already trained model to analyze new data and make decisions.

In early August, AMD forecast quarterly revenue above Wall Street expectations. The company expects third-quarter revenue of about $13 billion plus or minus $300 million. However, the forecast was lower than inflated expectations of investors, which caused the company’s shares that day fell by more than 7%. Since then, they have grown by more than 26%.

In addition to AMD, shares of other chipmakers also rose on Monday. So, Intel at the peak added about 14.8%, Qualcomm – 8%, and the industry index of the semiconductor sector (SOX) rose by 3.7%, reaching a maximum for the month.