AMD achieves $1 trillion valuation as AI drives sales
It’s official: AMD has achieved a $1 trillion valuation, beating Intel to the milestone
AMD’s share price has risen by over 25% over the past week, boosting the company’s share value to over $615. This gives AMD a market cap of $1 trillion, joining Apple, Broadcom, Tesla, and Nvidia in the trillion-plus club.
With Intel’s market cap being around $643 billion at the time of writing, AMD has significantly outpaced its long-term rival. With strong EPYC server CPU sales and the growing popularity of AMD’s Instinct AI accelerators, AMD is set to capitalise on the AI race, with investors flocking to its shares.
Publicly, AMD’s focus has shifted to AI. AMD’s next-generation Zen 6 CPU cores will come first in EPYC server processors. AMD didn’t even mention the consumer market when it launched its first Zen 6 products. Furthermore, AMD has said little about its long-term Ryzen and Radeon product roadmaps, leaving consumers with no clear idea of AMD’s plans.
Datacenters now account for more than 50% of AMD’s revenue and drive most of the company’s growth. AMD’s datacenter unit reported $6.7 billion in sales last quarter, up 107% from last year. Right now, datacenter spending remains high, and that puts AMD in a strong position.
Nvidia reached a valuation of $1 trillion in 2023, and today the company is worth over $5.4 trillion. As big as AMD has become, Nvidia’s market cap is still over five times larger.
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