U.S. chipmaker Advanced Micro Devices (AMD) has crossed a $1 trillion market valuation for the first time, as investors continue to focus on companies benefiting from growing artificial intelligence demand.

AMD shares rose about 9.6% to $613.31 on Monday, reaching a record high and pushing the company’s market capitalization above $1 trillion.

AMD is now the fourth U.S. chipmaker to reach the $1 trillion valuation mark, after Nvidia, Broadcom and Micron. Nvidia remains the largest of the group, with a valuation of more than $5 trillion.

The rise comes as AMD expands its role in AI computing. The company has moved beyond selling individual chips and is developing complete systems that combine processors, networking equipment and other hardware to compete with Nvidia.

AMD has also benefited from rising demand for server CPUs used alongside graphics processors for AI workloads. This has helped the company gain market share from Intel.

The company reported strong growth earlier this year, with second-quarter revenue rising 50% from a year earlier to $11.5 billion, supported by more than double the revenue from its data center business.

AMD has also announced partnerships and ventures involving AI companies including OpenAI and Anthropic.

AMD shares have risen sharply in 2026. Reuters reported that the stock was up about 185% this year as of Monday, significantly ahead of the Nasdaq’s 15.8% gain.

The latest rally reflects renewed investor interest in AI-related companies and expectations that spending on AI infrastructure will continue to grow.