AMD hits $1 trillion market cap for the first time after stock surge

Advanced Micro Devices stock surged 10% on Monday, reaching an intraday high of $615.52 and pushing the company's market capitalization above $1 trillion for the first time. The milestone caps a remarkable five-day winning streak in which AMD shares gained approximately 25%, rebounding from last month's sell-off following the company's second-quarter earnings release.

AMD reported second-quarter revenue of $11.54 billion, up 50% year-over-year from $7.69 billion, with artificial intelligence chips driving the growth. The company's Data Center unit—the engine of this expansion—generated $6.7 billion in sales, representing a 107% increase from the same period last year. For the full year, AMD stock has climbed more than 180%, making it one of the strongest performers in the chip sector.

Despite this impressive trajectory, AMD remains substantially behind AI chip leader Nvidia, which commands a market capitalization of roughly $5.4 trillion and controls the majority share of the AI data center chip market. The broader AI buildout that has fueled gains across chip stocks shows no signs of slowing, even amid public concerns about data center power consumption and the safety risks of large language models.

AMD CEO Lisa Su indicated on the company's recent earnings call that the company expects to double its data center sales in 2027—a projection that underscores confidence in sustained demand. Last week, Nvidia CEO Jensen Huang signaled similar momentum, stating he anticipated doubling the number of chips his company ships next year.