NEWYORK
Advanced Micro Devices (AMD) closed at $615.52 on Sept. 21, becoming the fourth U.S. chipmaker to reach a $1 trillion market capitalization. The stock has climbed 184 percent this year and currently trades around $608.
History suggests the trillion-dollar mark is not a ceiling. Nvidia, which crossed $1 trillion in mid-June 2023, gained 216 percent over the following 12 months despite a 13 percent year-over-year revenue decline in Q2 2023. The company guided for $11 billion in Q3 2023, then delivered $26.0 billion in Q3 2024—a 262 percent year-over-year increase.
Broadcom reached $1 trillion on Dec. 13, 2024, climbing 60 percent over the next 12 months. Taiwan Semiconductor Manufacturing, which hit the mark on Oct. 17, 2024, rose 43 percent as third-quarter 2025 revenue grew 41 percent year over year to $33.1 billion.
Valuation matters. Nvidia traded at nearly 40 times trailing sales at its trillion-dollar crossing and saw the largest subsequent gain among the cohort. Taiwan Semiconductor traded at around 13 times trailing sales and experienced more modest appreciation. AMD's multiple relative to this group will determine the realistic upside from current levels.
AMD's growth is accelerating. Second-quarter revenue grew 50 percent year over year to a record $11.5 billion. Data center revenue—driven by EPYC server processors and Instinct AI accelerators—jumped 107 percent to $6.7 billion, reversing a year-ago decline.
The stock's momentum is real. But investors should monitor AMD's valuation against Nvidia's at the trillion-dollar crossing and whether the company's data center growth sustains the 100-plus percent year-over-year trajectory that justified the rally.
