On September 22, AMD crossed the $1 trillion market cap mark for the first time, joining the trillion-dollar chip club as investors bet on its AI compute growth.

AMD shares jumped **9.6% to $613.31**, a record high. The Santa Clara-based chipmaker is Nvidia’s main GPU rival. AMD is now the **fourth U.S. chip company** to reach $1 trillion, after Nvidia, Broadcom, and Micron. Nvidia, the world’s most valuable company, passed $5 trillion in 2023.

Thomas Hayes of Great Hill Capital LLC said capital is flowing back into AI. Investors now see AI as one of the few growth areas in a slowing economy, with AMD a prime example.

Semiconductor stocks rose broadly on Monday. Intel gained about 12.14%, with a market cap near $643.7 billion, below AMD. AMD is shifting from selling individual chips to full systems combining processors, networking, and hardware, directly targeting Nvidia. Rising demand for CPU-GPU co-processing in server inference is also helping AMD take share from Intel.

AMD’s quarterly revenue guidance last month beat Wall Street’s base estimate but fell short of higher investor expectations. Still, AMD stock is up 185% in 2026, far outpacing the Nasdaq’s 15.8% gain and ranking among the best S&P 500 performers. AMD trades at about 41x forward earnings, below its 10-year average of 44x but well above Nvidia’s 16.3x.

ICgoodFind: AMD’s $1 trillion milestone intensifies competition in AI compute. Server CPU and GPU co-processing demand continues to reshape the chip market.