Advanced Micro Devices reached a market valuation of $1 trillion on Monday, with shares peaking at $615.99. The stock closed at $609.65, reflecting an 8% increase and a market capitalization of $995 billion. AMD is now the fourth US chipmaker to cross the $1 trillion threshold, joining Nvidia, Broadcom, and Micron.
Market interest shifted toward CPUs, driven by the popularity of Meta’s AI agent Muse, which requires significant central processing power for inference. Intel CEO Lip-Bu Tan noted that demand for CPUs currently exceeds supply, with the company fulfilling only 50% of customer orders. This trend redirected investment away from Nvidia, which focuses primarily on graphics processors.
AMD also announced plans to increase prices by nearly 10% for AI accelerators, graphics chips, and motherboard chipsets starting in the fourth quarter. This move follows rising production costs from TSMC and is expected to improve AMD's profit margins. Meanwhile, Intel shares rose 12.03% to $121.67, and Arm Holdings gained 15.47% to reach a valuation of $339.93 billion.
Despite a 2.33% gain, Nvidia’s market performance appeared modest in percentage terms compared to its peers. However, this growth added approximately $128 billion to its total valuation, which stands at $5.49 trillion. Investors continue to debate whether AI spending has peaked following earlier warnings of a potential market slowdown from Anthropic CEO Dario Amodei.
