AMD's stock price reached an all-time high during trading, with its market value exceeding $1 trillion for the first time. According to Reuters, it became the fourth U.S. chipmaker to cross this threshold, following Nvidia, Broadcom, and Micron.

On that day, the stock price rose about 9% to 10%, reaching an intraday high of approximately $615. It has increased about 24% to 25% over five consecutive days, with a year-to-date increase of over 180%. Nvidia's market value remains around $5.4 trillion. The Philadelphia Semiconductor Index also strengthened, with Intel, Arm, and others following suit.

When Lisa Su became CEO in October 2014, AMD's market value was around $2 to $3 billion, with a stock price of about $3, struggling from a decline in x86 market share and the failure of the Bulldozer architecture. She eliminated the burden of in-house wafer production and transformed the company into a design firm. In 2017, Ryzen challenged Intel in consumer and server markets, followed by EPYC entering data centers, and then GPUs contributing to the current wave of AI infrastructure. In the most recent complete quarter, revenue was $11.54 billion, a 50% year-on-year increase, with data center sales of $6.7 billion, up 107% year-on-year.

In terms of valuation, Reuters noted that AMD was trading at about 41 times its projected earnings for the next 12 months, below its own ten-year average of 44 times, but higher than Nvidia's approximately 16 times forward P/E ratio at that time. After last month's earnings guidance fell short of some investors' expectations, the stock price retreated, but this five-day rebound pushed the market value back over the trillion-dollar mark.

Buyers are positioning AMD as the second supplier of configurable AI accelerators outside of Nvidia; sellers believe that the premium has already priced in the speed of market share gains. The event-driven factor is that the market value hit $1 trillion for the first time. Beneficiaries include data center GPUs and server CPUs; those under pressure include the traditional PC cycle pricing model for AMD and Intel, which has been left behind in market value.

The market is trading on whether the second player can sustain orders for training and inference, not commemorating the dire straits of 2014.

Source: Public Information