Advanced Micro Devices (AMD) crossed a $1 trillion market value for the initial time on Monday, hitting a peak of $615.99 per share before pulling back below that threshold.
The stock last changed hands at $609.65, marking a gain of over 8% and pushing its market capitalization to $995 billion. During the same trading session, Nvidia advanced 2.33%.
AMD Passed a Milestone Intel Could Not
Intel experienced an even larger surge, climbing 12.03% to $121.67, while Arm Holdings advanced 15.47%. Even so, neither reached the $1 trillion mark, with Intel holding a valuation of $639.32 billion and Arm valued at $339.93 billion.
Rather than the magnitude of the price movement, reaching the milestone itself is what positioned AMD as the primary focus. This achievement makes AMD the fourth US semiconductor manufacturer to cross a $1 trillion valuation, following Nvidia, Broadcom, and Micron.
3 Reasons Nvidia Sat Out the Rally
The first factor involves the specific assets investors targeted. Following the rise of Meta’s consumer AI agent Muse to the top of Apple’s US App Store, market participants interpreted this adoption as a signal that responding to live user requests—a workload known as inference—will demand significantly more central processing units (CPUs) operating alongside graphics processors. Last week in Denver at the Splunk conference, Intel Chief Executive Lip-Bu Tan addressed this supply constraint.
“CPU demand is so high that we can only supply 50% of customers,” said Lip-Bu Tan, chief executive at Intel.
Because Nvidia predominantly offers graphics processors, capital flowing toward CPU manufacturers bypassed it entirely.
The second factor is specific to the company. On September 18, TrendForce reported that AMD alerted clients to upcoming price hikes of approximately 10% for AI accelerators, graphics chips, and motherboard chipsets starting in the fourth quarter. These adjustments reflect higher costs passed along by Taiwanese manufacturer TSMC, though Ryzen desktop processors were excluded. This dynamic serves to expand AMD’s profit margins independently.
The third factor relates to scale, which operates in both directions. Nvidia did register gains; at a valuation of $5.49 trillion, its 2.33% increase translated to roughly $128 billion in a single day—an amount greater than a third of Arm’s total worth. At that magnitude, missing out on a broader rally takes on a different meaning, though it barely registered when measured through percentage terms, which served as the metric for Monday’s session.
On September 10, BeInCrypto highlighted this market rotation as Intel and AMD broke out of multi-month downtrends while Nvidia posted a 2.33% gain. On that date, AMD finished the session at $521.10.
This market activity occurs amid an ongoing debate concerning whether expenditures on artificial intelligence have reached their peak. Earlier in the month, semiconductor equities experienced a sell-off following warnings of a potential slowdown from Anthropic Chief Executive Dario Amodei.
Upcoming fourth-quarter financial reports will determine whether these price increases successfully materialize on the income statement or if Monday’s trading session simply reflected anticipation of demand that has yet to materialize.
Frequently Asked Questions
Did AMD officially reach a $1 trillion market cap?
Yes, AMD touched a $1 trillion market value for the first time on Monday, peaking at $615.99 a share before easing back below that line and closing at a market capitalization of $995 billion.
Which companies are the US chipmakers valued above $1 trillion?
Following this milestone, AMD became the fourth US chipmaker valued above $1 trillion, joining Nvidia, Broadcom, and Micron.
Why did Nvidia miss out on the rally?
Nvidia sat out the rally primarily due to investor focus on CPU suppliers for inference workloads, AMD’s company-specific price hikes, and the mathematical reality of Nvidia’s massive scale.
What did Intel’s CEO say about CPU demand?
Intel Chief Executive Lip-Bu Tan stated at the Splunk conference in Denver that CPU demand is so high that Intel can only supply 50% of customers.
When did AMD warn customers about price increases?
TrendForce reported on September 18 that AMD warned customers of price increases near 10% on AI accelerators, graphics chips, and motherboard chipsets starting from the fourth quarter.
