AMD joins $1 trillion club as chipmakers rally

Advanced Micro Devices soared past $1 trillion in market capitalisation for the first time last night, joining a small group of chipmakers to reach the milestone, as investors bet on its expanding role in AI computing.

AMD shares were last up 9.6% at $613.31, scaling a record high. The milestone caps a stellar rally for the California-based company, regarded as the closest rival to AI bellwether Nvidia for graphics processing units.

It becomes only the fourth US chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron. Nvidia crossed the mark in 2023 and is now the world's most valuable company, worth more than $5 trillion.

"Money is moving back into the AI trade," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.