Advanced Micro Devices (AMD) has joined the elite $1 trillion club. The chipmaker reached the milestone for the first time on Monday, September 21. Investors are betting heavily on AMD’s growing role in artificial intelligence (AI). Its shares jumped 9.6% to $613.31, setting a new record. AMD is now the fourth US chipmaker to cross $1 trillion. Nvidia, Broadcom and Micron had reached the mark earlier.
The milestone highlights AMD’s stunning rise this year. Its shares have gained about 185% in 2026. That growth has far outpaced the Nasdaq’s 15.8% rise. AMD has also emerged as Nvidia’s closest rival in the AI chip market. The company now sells more than individual chips. It offers complete computing systems with processors, networking equipment and other hardware. This strategy helps AMD compete more directly with Nvidia.
Meanwhile, demand for AI computing continues to drive the chip sector. AMD also benefits from rising demand for server CPUs used alongside powerful AI processors. That growth has helped the company take market share from Intel. Chip stocks rallied broadly on Monday. Intel jumped about 11.8%, while Qualcomm gained 4.5%. The wider Philadelphia Semiconductor Index also rose 2.7%.
However, AMD still faces high investor expectations. The company recently forecast quarterly revenue above Wall Street estimates. Still, the forecast fell short of some ambitious market expectations. AMD trades at about 41 times its 12-month forward earnings. That sits below its 10-year average of 44 times. Nvidia, by comparison, recently traded at about 16.3 times forward earnings. Thomas Hayes of Great Hill Capital said,
“Money is moving back into the AI trade.”
For AMD, that renewed interest could keep the AI chip race firmly in focus.
