AMD Hits $1 Trillion Market Cap as Nvidia Sat Out AI Rally
AMD hit a market capitalization of $1 trillion for the first time on Monday, reaching a peak of $615.99 per share before dipping below that mark. The stock closed at $609.65, up over 8%, with a market cap of $995 billion.
This milestone made AMD the fourth US chipmaker to reach this value, following Nvidia, Broadcom, and Micron.
Nvidia, however, did not participate in the rally, despite being worth $5.49 trillion. The company's 2.33% gain added roughly $128 billion in a single session, but measured as a percentage, it barely registered.
AMD's rise can be attributed to several factors, including the growing demand for CPUs in AI applications. Meta's consumer AI agent Muse reached the top of Apple's US App Store, signaling a need for more central processing units (CPUs) working alongside graphics chips.