AMD crossed the USD 1 trillion market value mark for the first time. The share price of the chipmaker jumped around 10% on September 21, which helped the company reach a record of USD 615.52. The stock also gained about 25% in five trading sessions. The rise comes as investors put more focus on AMD’s AI chips and growing data center business.
AMD’s latest numbers show why AI is becoming a bigger part of its business. The company reported USD 11.54 billion in second-quarter revenue, up 50% from the same period last year. Data center sales reached USD 6.7 billion, more than twice the figure from the same period last year. CEO Lisa Su also said AMD expects to double its data center sales in 2027.
Interestingly, the growth story of the chipmaker isn’t only associated with PC and server processors. It’s more about AI chips that are driving the growth. Companies are spending heavily on AI computing, which means they need more chips to run these systems. AMD is using this demand to expand its data center business and compete for a larger share of the AI hardware market.
The shift is also changing how AMD sells its technology. It is moving beyond individual chips and offering more of the hardware needed to build large AI systems.
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AMD is bringing processors, AI accelerators, networking equipment and other hardware together in complete systems. This approach gives customers more of what they need to build and run AI infrastructure from one company.
The USD 1 trillion milestone shows how much AI changed AMD’s business. Its data center growth and wider AI push are now key parts of its next phase. The growth is commendable, still, AMD is far behind NVIDIA’s more than USD 5 trillion valuation. The company must focus more on its strategies to become the toughest rival of NVIDIA.