American chipmaker Advanced Micro Devices (AMD) has reached a market capitalization of $1 trillion for the first time in its history, thanks to a surge in the company's shares amid high investor expectations for its role in the artificial intelligence computing market.
American chipmaker Advanced Micro Devices (AMD) has reached a market capitalization of $1 trillion for the first time in its history, thanks to a surge in the company's shares amid high investor expectations for its role in the artificial intelligence computing market.
Reuters reports on the historic achievement of the technology giant.
AMD shares jumped 9.6% in trading on Monday, hitting an all-time high of $613.31, making the Santa Clara-based company just the fourth U.S. chipmaker to surpass the trillion-dollar mark, joining an elite club that includes Nvidia, Broadcom and Micron.
“Money is coming back into AI trading,” said Thomas Hayes, president of Great Hill Capital LLC. He noted that after a cooling period caused by high oil prices due to the US-Iran war and tight monetary policy by the Federal Reserve, investors have once again seen AI as the only sector capable of sustainable growth in an economic slowdown. “AMD is the embodiment of this trend,” the analyst added.
AMD's growth dragged the entire sector along with it: shares of its main competitor Intel jumped 11.8%, Qualcomm - 4.5%, and the overall semiconductor index (SOX) rose 2.7%, reaching more than a monthly high.
It is likely that the company achieved this result by completely saving every cent, as in the recent case of a security researcher who was refused a $10,000 bounty by AMD for a bug he found, despite his efforts and cooperation with the company. m
