Chipmaker Advanced Micro Devices (AMD) stock surged 10% on Monday to an intraday record high of $615.52, briefly pushing its market capitalization past the $1 trillion benchmark for the first time.
The company’s stock has gained more than 180% this year, including a 25% jump over the past five trading days.
Strong financial results and growing demand for artificial intelligence chips have fueled the rally. AMD reported $11.54 billion in second-quarter revenue, up 50% from $7.69 billion a year earlier.
Feeding the growth is the demand for AI chips. AMD’s data center unit reported sales of $6.7 billion, up 107% year over year.
CEO Lisa Su recently noted that data center sales would double in 2027.
Rival Nvidia also projects doubling its chip sales next year. It is valued at approximately $5.4 trillion.