AMD joins $1-trillion club as chipmakers rally on AI-driven demand — SkimNews
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- AMD briefly crossed $1 trillion in market cap for the first time Monday, with shares last up 9% at $610 after hitting an all-time high of $613.92
- AMD becomes the fourth U.S. chipmaker to top $1 trillion in valuation, after Nvidia (now worth over $5 trillion after crossing the mark in 2023), Broadcom, and Micron
- AMD has shifted from selling individual chips to offering complete systems combining processors, networking gear, and related hardware to compete with Nvidia's offerings
- Rising demand for CPUs used alongside GPUs in AI inference servers has helped AMD take market share from Intel
- AMD stock dropped over 7% early last month when its quarterly revenue forecast — above Wall Street estimates but below lofty investor expectations — disappointed the Street, before rebounding more than 26%
- Intel jumped about 11% on Monday, Qualcomm rose 4.1%, and the broader chips index gained 2.6% to a one-month high as most chipmakers rallied
Why it matters: AMD joins a trillion-dollar chipmaker club after pivoting to full systems and capturing CPU inference share from Intel — evidence AI demand is broadening beyond Nvidia's GPU dominance. But shares dropped 7% last month on a "lofty expectations" miss despite beating estimates, showing the valuation's fragility.
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