AMD Crosses $1 Trillion Market Cap on AI Chip Demand — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- AMD stock surged 9% to an intraday high of $613.92 on Monday, crossing the $1 trillion market cap threshold for the first time during a five-day rally that has lifted shares about 24%, with the stock up more than 180% year-to-date.
- AMD's Q2 revenue reached $11.54 billion, up 50% year-over-year, and its Data Center segment posted $6.7 billion in sales, up 107% from a year earlier — fueled by AI chip demand.
- CEO Lisa Su told investors on AMD's earnings call the company expects to double data center sales in 2027.
- Nvidia, the AI chip leader with a roughly $5.4 trillion market cap, expects to double chip sales next year, per CEO Jensen Huang.
- The AI buildout driving chip stocks shows few signs of slowing despite public backlash against data centers and concerns about the safety of large language models.
Why it matters: AMD crossing $1T confirms AI chip demand is broad enough to lift a credible No. 2 player — its Data Center segment more than doubled to $6.7B in Q2, up 107% year-over-year. With the stock up 180%+ YTD and Su targeting a doubling of data center sales by 2027, AMD has cemented its status as the chip sector's clear runner-up to Nvidia's $5.4T.
Ask SkimNews
