Abstract:
AMD shares surged 9% on Monday, hitting a record high, with the company's market capitalization crossing the $1 trillion mark for the first time. The chip giant hit an intraday high of $613.92, pushing the company's total market value to just over $1 trillion.
AMD has emerged from five consecutive trading days of gains, with a cumulative increase of approximately 24%. For investors, this rebound is very encouraging; in August the company released
second-quarter earnings that beat market expectations
After that, the stock price actually fell.The company’s revenue in the second quarter was US$11.54 billion, a 50% year-on-year increase from US$7.69 billion in the same period last year. AI chips are the core driving force for growth. AMD’s data center business segment revenue reached $6.7 billion, a 107% year-on-year increase.
This chip manufacturer has performed very well this year, with its stock price rising by more than 180% during the year. Even with the astonishing gains, there is still a huge gap between AMD and AI chip leader Nvidia, which currently has a market value of approximately US$5.4 trillion.
Despite the public opposition to data centers and the market’s concerns about the underlying security risks of large models, the AI industry construction boom that has driven the chip sector’s surge this year shows little sign of slowing down.
AMD CEO Su Zifeng said in an earnings call last month that it expects data center business revenue to double in 2027. Last week, Nvidia CEO Jensen Huang talked about the outlook for chip demand, saying he expected the company to double its chip shipments next year.
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