AMD joins the $1 trillion club, leaving Intel behind

AMD has joined the $1 trillion market-cap club for the first time. The company reached the milestone ahead of longtime rival Intel as investor enthusiasm for artificial-intelligence hardware continues to drive chip stocks higher.

AMD shares rose about 10 % on Monday and reached an intraday record of $615, taking the company’s market value just above $1 trillion. The move extended a five-session winning streak in which the stock gained roughly 24 %. AMD shares are up more than 180 % so far this year.

The milestone underscores how dramatically the semiconductor market has changed in the AI era. A decade ago, Intel’s market capitalization was roughly 30 times larger than AMD’s. Now, AMD has crossed the trillion-dollar threshold while Intel’s market value stands at about $644 billion.

At the same time, AMD is still far smaller than Nvidia, the dominant supplier of AI accelerators. Nvidia’s market capitalization is around $5.4 trillion, leaving it well ahead of AMD.

The market’s enthusiasm is tied to AMD’s fast-growing AI and data-center business. The company reported second-quarter revenue of $11.54 billion, up 50 % from $7.69 billion a year earlier. Its Data Center segment generated $6.7 billion in revenue, a 107 % year-on-year increase, as sales of AI-related chips became the company’s main growth driver.

CEO Lisa Su said on AMD’s most recent earnings call that the company expects to double data-center sales by 2027. That outlook has helped reinforce investor confidence that AMD can capture a meaningful share of AI infrastructure spending, even as Nvidia remains the market leader.

The surge also reflects a broader market conviction that spending on AI hardware remains strong. Rising demand for the processors, accelerators, servers and networking equipment needed to train and operate AI models has lifted semiconductor valuations across the market, despite increasing public opposition to data-center construction and concerns about AI safety.