U.S.-listed Advanced Micro Devices (AMD) crossed the $1 trillion mark in market capitalisation for the first time on Monday, becoming the latest chipmaker to benefit from a surge in investor interest in artificial intelligence.
AMD’s milestone reflects the rapid expansion in valuations across the semiconductor industry as technology companies ramp up spending on AI infrastructure, including advanced processors and data-centre equipment.
Of the 17 publicly listed companies currently valued at more than $1 trillion, six have reached the milestone over the past four years, driven in large part by the accelerating adoption of AI and the investment boom surrounding the technology.
The companies that joined the club during this period reflect the growing importance of AI to the global technology industry, as investors have poured money into businesses seen as key beneficiaries of rising demand for computing power.
The other companies crossed the $1 trillion threshold for different reasons.
Apple became the first U.S. company to reach the milestone in 2018, buoyed by the success of its iPhone business and a vast ecosystem of consumer devices and services. Other companies have benefited from trends ranging from the growth of e-commerce and energy markets to the emergence of blockbuster obesity treatments.
The expansion of the $1 trillion club highlights the changing composition of the world’s most valuable companies. While consumer technology and energy once dominated the ranks of the largest firms, semiconductor companies and other businesses tied to AI infrastructure have gained prominence in recent years.
AMD has emerged as a major challenger in the market for AI accelerators, competing with Nvidia and other chipmakers as cloud providers and technology companies increase capital expenditure to build AI computing capacity.
The milestone also underscores how investor expectations around AI have reshaped semiconductor valuations, even as companies face questions over the sustainability of spending and the returns from massive investments in AI infrastructure.
