AMD’s stock price rose 9% on Monday to a record high of $613.92, pushing the company’s market value to exceed $1 trillion for the first time.
Image source: AMD
AMD has risen for five consecutive trading days, during which the stock price rose approximately 24%. Overall, it’s been an unusually successful year for the chipmaker: its shares are up more than 180%. Yet despite such impressive growth, AMD still lags significantly behind Nvidia, the leader in AI chips, which has a market capitalization of approximately $5.4 trillion. On the other hand, AMD crossed the trillion mark before Intel, which has a market capitalization of US$644 billion. Although just 10 years ago, Intel’s capital size was still about 30 times ahead of AMD.
Huge advances in artificial intelligence technology have sent chip stocks soaring last year and this year, and there are no signs of slowing down even amid public dissatisfaction with data centers and concerns about the security of large language models.
AMD’s second-quarter revenue was US$11.54 billion, an increase of 50% from US$7.69 billion in the same period last year. A key driver of this growth is artificial intelligence system chips. AMD’s data center division sales reached US$6.7 billion, an increase of 107% year-on-year.
Last month, AMD Chief Executive Lisa Su said on an earnings call that the company expects data center sales to double by 2027. Last week, Nvidia CEO Jensen Huang also weighed in on demand for semiconductor products, saying he expected the company’s chip sales to double next year.
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