Advanced Micro Devices (AMD) hit a major milestone on Sept. 21, surpassing the $1 trillion market capitalization mark. AMD becomes the fourth chipmaker in the rarefied club, joining Nvidia, Broadcom, and Micron Technology.
AMD shares have been on a huge run, jumping 187% so far this year and 23% in the last week as the semiconductor sector rebounds. And while the company has long toiled in Nvidia’s formidable shadow, investors are finding plenty to like about the company and its role in the growth of artificial intelligence.
AMD is much more than a Nvidia competitor and the California-based company makes a wide range of high-performance processors, including graphics processing units (GPUs) and central processing units (CPUs), with widespread applications in personal computers, gaming devices, and data centers.
AMD’s Data center revenue in the second quarter was $6.7 billion, up 107% from a year ago. Management attributed the gains to strong demand for the company’s EPYC server CPUs and its Instinct GPUs.
The company’s overall revenue in Q2 was $11.53 billion, up 50% from a year ago. The company had net income of $2.29 billion, up 163%, and diluted earnings per share of $1.38, up 156% from last year.
The Elite Trillion-Dollar Club
- The AI Infrastructure Powerhouses: Nvidia (NVDA) continues to anchor this tier alongside advanced chipmakers Broadcom (AVGO) and AMD (AMD), all fueled by relentless demand for data center silicon. Memory giants SK Hynix and Micron Technology (MU) have also solidified their spots, driven by the critical need for high-bandwidth memory (HBM).
- Big Tech & Cloud Giants: The foundational pillars of technology—Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META)—maintain their trillions, buoyed by robust cloud ecosystems, digital advertising, and consumer hardware ecosystems.
- Automotive & Conglomerates: Tesla (TSLA) remains a fixture due to its advancements in electric vehicles and autonomy, while Warren Buffett’s Berkshire Hathaway (BRK.A/B) represents a diversified anchor of traditional American industry.
- Retail & Healthcare Pioneers: Walmart (WMT) holds its ground as the first traditional retailer to cross the threshold, transformed by e-commerce scale. Meanwhile, Eli Lilly (LLY) represents the pharmaceutical vanguard, riding a massive wave of growth from its diabetes and weight-loss treatments.
