Updated version 2 - As chipmaker stocks soar on AI-driven demand, AMD joins the “trillion-dollar club”

Analyst comments were added in the fifth paragraph, and the latest share price was updated

Purvi Agarwal/Shashwat Chauhan

Reuters, September 21 - Advanced Micro Devices (AMD.O) saw its market value surpass the 10 hundred billion dollar milestone for the first time on Monday, joining the ranks of the few chipmakers to reach this landmark as investors bet on its growing role in artificial intelligence computing.

AMD's latest share price stood at $613.31, up 9.6%, hitting a record high. This milestone signals a remarkable rally for the Santa Clara, California-based company, widely viewed as the closest rival to artificial intelligence bellwether Nvidia (NVDA.O) in the GPU arena.

AMD has become the fourth U.S. chipmaker with a market capitalization surpassing 10 hundred billion dollars, after Nvidia, Broadcom (AVGO.O), and Micron (MU.O). Nvidia crossed the threshold in 2023 and is currently the world's most valuable company, with a market value over 5 ten hundred billion dollars.

“Money is flowing back into artificial intelligence,” said Thomas Hayes, chairman at Great Hill Capital LLC in New York.

In recent months, as the market scrutinized AI spending by big tech giants, investor enthusiasm for chipmakers has cooled. The rise in oil prices related to the Middle East conflict, along with expectations that interest rates will remain “higher for longer”, have added further pressure.

But Hayes noted that today, investors see artificial intelligence as the only sector still delivering growth amid a Federal Reserve-induced slowdown. “AMD is the standout in this trend.”

On Monday, most chip stocks surged, with AMD’s competitor Intel (INTC.O) jumping around 11.8% and Qualcomm (QCOM.O) rising 4.5%. The broader chip index (.SOX) climbed 2.7%, setting a new high in over a month.

Beyond chips

AMD has accelerated its AI product launches and shifted from simply selling individual chips to providing complete systems—integrating processors, networking devices, and related hardware together—to compete with Nvidia.

Meanwhile, in servers that process inference workloads, demand is rising for central processors to work with GPUs, helping AMD chip away at market share from Intel.

Last month, AMD’s quarter revenue forecast (link) exceeded Wall Street’s estimates but still fell short of investors’ high expectations.

Nonetheless, the company’s stock is up 185% in 2026, well ahead of the tech-heavy Nasdaq's 15.8% gain (.IXIC), making it one of the best performers in the S&P 500 index (.SPX).

AMD's latest price-earnings ratio is about 41 times (based on 12-month forward earnings)—below the 10-year average of 44, but far above Nvidia's recent forward P/E of 16.3 times.

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