AMD SHARES TOP $1 TRILLION MARKET VALUE FOR FIRST TIME

Advanced Micro Devices' shares rose 9% on Monday, pushing the chipmaker's market capitalisation above $1 trillion for the first time. The stock reached an intraday high of $613.92 during the session. The rise came amid renewed investor optimism for chipmakers that supply the artificial intelligence sector. The gain extended a five-day winning streak in which AMD's shares climbed about 24%.

The rally followed second-quarter results in which AMD reported revenue of $11.54 billion, up 50% from $7.69 billion a year earlier, growth it linked to demand for artificial intelligence chips. The company's Data Centre division reported sales of $6.7 billion, up 107% on the same period the previous year. The results beat expectations, but AMD's shares fell last month before recovering during the current rally. The rise in AMD's value came as chip stocks broadly gained on optimism about the sector's role in artificial intelligence.

AMD's new valuation remains well below that of Nvidia, whose market capitalisation stood at about $5.4 trillion. The wider build-out of artificial intelligence infrastructure has continued alongside public criticism of data centres and concerns about the safety of large language models. AMD's chairwoman and chief executive, Lisa Su, said last month on the company's earnings call that she expected the company's data centre sales to double by 2027. AMD's shares are up more than 180% so far this year, a rise linked to demand for chips used in artificial intelligence systems.