AMD joins $1 trillion club as chip stocks rally on AI demand
Advanced Micro Devices Inc. shares rose 9.1% to $610.87, crossing the $1 trillion market capitalization threshold for the first time on Monday amid a broader advance in chip stocks driven by artificial intelligence demand. AMD becomes the fourth-largest U.S. chipmaker to reach this milestone, capping a rally that positions it as a key rival to Nvidia for graphics processing units. The Philadelphia Semiconductor index also climbed approximately 3.6%.
6% on the session to about a 1-month high; biggest SOX winners are Arm Holdings and Intel, jumping nearly 15% and 14%, respectively * NVDA up 1%, Qualcomm's shares gaining 8% on Mon * AMD stock recently traded at 41 times expected earnings vs its 5-yr avg of 31x, per LSEG data * Avg rating of 55 analysts covering the stock is "buy"; median PT of $600 up from $479 on Jun 21 * With move on Mon, stock up about 185% YTD (Lance Tupper is a Reuters market analyst. com 1-646-279-6380)