Last Monday, September 21st, AMD joined the exclusive group of corporations that exceeded the $1 trillion market capitalization threshold on the Nasdaq stock exchange. This unprecedented milestone for the company was reached after its share price surpassed $613 per unit.
This performance suggests a favorable period for AMD, as the value was achieved after the company registered an increase of almost 25% in its stock price over the last five business days.
The day marked a turning point compared to Intel, its competitor, which had never reached a market value equal to or greater than $1 trillion. Before AMD, among American semiconductor companies, only Nvidia, Broadcom, and Micron had reached such a scale.
The driving force behind this growth is the increasing demand for artificial intelligence applications, which continues at an accelerated pace. Although AMD is not yet at the technological level of AI offered by Nvidia, it has demonstrated a strong presence in this segment.
In this context, Lisa Su, CEO of AMD, stated during the financial results conference call from the previous month that the company projects to double its sales of data center solutions by 2027.
It is important to note that the $1 trillion status was brief, as the AMD stock price subsequently fell to the $610 range after having peaked at $615.99 earlier. Despite this, the achievement of the day was so significant that it was celebrated by Saša Marinković, Senior Marketing Director at AMD, via the X platform.
At the time this news was released, AMD had a market capitalization of $994.7 billion. For comparison, Intel also showed recent appreciation but was valued at $640.8 billion in the same measurement.