AMD joins $1 trillion club as chipmakers rally on AI-driven demand

Advanced Micro Devices soared past $1 trillion in market capitalization for the first time on Monday, joining a small group of chipmakers to reach the milestone, as investors bet on its expanding role in AI computing. AMD shares were last up 9.6 percent at $613.31, scaling a record high. The milestone caps a stellar rally for the Santa Clara, California-based company, regarded as the closest rival to AI bellwether Nvidia for graphics processing units. It becomes only the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron. Nvidia crossed the mark in 2023 and is now the world's most valuable company, worth more than $5 trillion. "Money is moving back into the AI trade," said Thomas Hayes, chairman at Great Hill Capital LLC in New York. Enthusiasm for chipmakers cooled in recent months as markets scrutinized AI spending by hyperscalers. Higher oil prices linked to the US-Iran conflict and expectations of higher-for-longer interest rates added to the pressure. But now investors believe AI is the only area that can work in a Federal Reserve-induced economic s