AMD hits $1 trillion market cap in chipmaker rally

Advanced Micro Devices (AMD) has joined the small group of chipmakers valued at $1 trillion, with record earnings and strong demand for AI chips pushing its stock to fresh highs.

AMD is now seen as a major supplier of computing power for data centers instead of just being regarded as Nvidia’s closest competitor.

The numbers behind AMD’s trillion-dollar valuation

In the second quarter of its 2026 fiscal year, AMD reported $11.5 billion in revenue, up 50% from a year earlier. Data center products accounted for $6.7 billion of that total revenue.

Earnings grew even faster, with AMD reporting earnings per share of $1.66, an 82% increase from the same period a year earlier. The company has also indicated that it plans to raise prices by 10%, which could give it another potential boost to future revenue.

The results came in as demand for AI chips continued to dominate the semiconductor market. AMD is simply the latest chipmaker to cross the $1 trillion mark as investors continue betting on AI-related demand.

A newly announced partnership with Anthropic has also put AMD further in the spotlight. The chipmaker’s valuation is increasingly tied to AI workloads, so landing a deal with the Claude maker gives investors another signal of potential demand.

Can AMD keep the rally going?

AMD is having a very great year, with its stock up more than 180% in 2026. The chipmaker still remains far behind AI leader Nvidia, though, a company with a market value of about $5.4 trillion.

The company’s shares traded around $610 after gaining 8.99% over the previous week, reaching $610.12 and an intraday high of $613.92.

Weekly volatility for the stock was at 11.73%, and the relative strength index hit 65.51, bringing it close to overbought territory.

The stock is expected to consolidate over the next five sessions, with the forecast putting it between $562.41 and $636.4, and the $559.81 price point seen as a key support level.

Viktoras Karapetjanc, an expert at Traders Union, expects the rally to continue, saying AMD could maintain its bullish momentum as long as earnings growth and demand for AI chips remain strong.

AMD CEO Lisa Su said on the company’s earning call last month that data center sales were expected to double in 2027.

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