Advanced Micro Devices stock surged 9% on Monday, pushing the chipmaker past a $1 trillion market capitalization for the first time2. Shares hit an intraday high of $613.92.
The milestone caps a five-day winning streak during which AMD shares gained about 24%. The stock is up more than 180% for the year.
AI accelerator sales are driving the rally. AMD reported Q2 revenue of $11.54 billion, up 50% from $7.69 billion a year earlier. Its Data Center unit, which houses the MI-series GPU line competing with Nvidia, posted $6.7 billion in sales, up 107% year over year.
CEO Lisa Su said last month that AMD expected to double data center sales by 2027. Nvidia CEO Jensen Huang said last week that he expected Nvidia to double the number of chips it sells next year.
Even at the $1 trillion mark, AMD remains far smaller than its principal rival. Nvidia carries a market cap of about $5.4 trillion. ANALYSIS The roughly five-to-one valuation gap tracks with Nvidia's larger share of data center GPU shipments, though AMD's 107% data center growth rate outpaced the overall company's 50% revenue increase, suggesting the AI segment is pulling the business forward.
The recent rally followed a period of weakness: AMD shares fell last month after the company reported Q2 earnings that beat expectations. ◆ The post-earnings dip followed by a rapid recovery to record highs indicates the market is repricing AMD's AI revenue trajectory rather than reacting to a single quarter's beat-or-miss.