AMD's Shares Spike 10% to $616, Sending Market Value Over $1 Trillion

AMD shares jumped 10% on Monday, 21 September, lifting the chipmaker's market capitalisation past the $1 trillion mark for the first time. The surge took the stock to a fresh record high of $616, extending a winning streak to five consecutive trading sessions. With this rise, AMD became the fourth U.S. chipmaker to join the trillion‑dollar club, following Nvidia, Broadcom and Micron. Nvidia, which crossed the threshold in 2023, now commands a market value exceeding $5 trillion. The rally came after investors eased worries that a slowdown in artificial‑intelligence development could dent demand for processors, accelerators and memory products. A fall in energy prices helped calm inflation concerns, while the 10‑year U.S. Treasury yield slipped below 5%, reducing pressure on growth‑focused technology stocks. AMD has sped up AI product launches and shifted from selling single chips to offering complete systems that bundle processors, networking gear and related hardware, sharpening its competition with Nvidia. The company also benefits from growing demand for central‑processing units used alongside graphics processors in AI‑inference servers, gaining market share from Intel. Rising demand for AI and data‑centre infrastructure has pushed other tech giants into the trillion‑dollar club, including Samsung Electronics, SK Hynix and Micron Technology. According to LiveMint data, about 14 firms now have market caps over $1 trillion, with most being technology‑focused. AMD's year‑to‑date gains stand at 184% after Monday’s high, underscoring investor optimism that the AI opportunity is large enough for multiple winners.