AMD Cracks $1 Trillion As AI Frenzy Sends Chip Stocks Soaring

Advanced Micro Devices briefly crossed $1 trillion in market value for the first time Monday as renewed enthusiasm for artificial intelligence sent semiconductor stocks soaring.

AMD shares jumped roughly 9% Monday and hit a record high above $613, briefly pushing the chipmaker’s valuation above the trillion-dollar threshold, according to Reuters. The rally made AMD the latest chipmaker to reach the milestone as investors continued betting on companies supplying computing power for AI.

The popularity of Meta’s new Muse AI agent contributed to Monday’s rally, with the app becoming the most-downloaded free iPhone app in the U.S, according to Barron’s. AI agents can require significant central processing unit capacity to perform inference, boosting investor expectations for demand from chipmakers supplying the processors.

The rally stretched across the semiconductor industry, with Intel jumping roughly 13% Monday and Arm Holdings climbing by double digits. The Philadelphia Semiconductor Index rose roughly 3% as investors piled back into AI-related stocks.

AMD joined Nvidia, Broadcom and Micron as U.S. chipmakers that have reached valuations of at least $1 trillion. Nvidia, the world’s most valuable publicly traded company, is worth more than $5 trillion.

Other companies that have crossed the $1 trillion threshold include Apple, Microsoft, Amazon, Alphabet and Meta.

Monday’s surge came just one week after mounting warnings over the potentially destructive power of advanced AI helped fuel a global tech selloff. OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei called for slowing the development of increasingly powerful AI systems amid concerns over the technology’s potential risks, according to Reuters.

Those concerns did not stop technology companies from pouring enormous sums into the physical infrastructure required to develop and run AI. Private data-center construction spending reached a $59.3 billion seasonally adjusted annual rate in May, up 23% from a year earlier, according to Census Bureau data.

AMD challenged Nvidia in the AI computing market, accelerating its product launches and expanding beyond individual processors into complete systems combining chips, networking equipment and other hardware.

AMD shares surged roughly 185% since the beginning of 2026, dramatically outpacing the Nasdaq’s roughly 16% gain over the same period, according to Reuters.

The broader stock market rallied Monday as oil prices fell and Treasury yields retreated, helping ease some investor concerns about inflation and borrowing costs.