AMD's stock rose 9% on Monday, reaching an intraday high of $613.92 and marking a record high for the company. This surge pushed its market capitalization above $1 trillion, a notable achievement for the chipmaker. The stock has gained approximately 24% over the past five days, following a previous decline after the company reported second-quarter earnings that exceeded expectations.
In Q2, AMD generated revenue of $11.54 billion, a 50% increase from $7.69 billion a year earlier, with its artificial intelligence chips significantly contributing to this growth. The Data Center unit alone reported sales of $6.7 billion, reflecting a remarkable 107% year-over-year increase.
Despite AMD's impressive performance, it still trails behind Nvidia, the leader in AI chips, which has a market cap of around $5.4 trillion. The ongoing demand for AI technology continues to drive growth in the semiconductor sector, with AMD's CEO Lisa Su projecting a doubling of data center sales by 2027.
Nvidia's CEO Jensen Huang also indicated strong demand, expecting to double chip sales next year. This bullish outlook for AI-related semiconductor sales suggests that the momentum in the sector is likely to persist