AMD soared 615.52 dollars, up nearly 10%, hitting a historical high. For the first time ever, its market cap surpassed one trillion dollars—becoming the fourth U.S. semiconductor company to join this club after Nvidia, Broadcom, and Micron. The same night, ARM and Intel also surged. The Philadelphia Semiconductor Index logged its best day since early August, and the Nasdaq again set a new closing high.
The story isn’t only happening on the GPU side. Meta’s AI assistant, Muse, launched in early September and shot to the No. 1 spot on the U.S. iPhone free chart. The market has begun to reassess just how much CPU capacity the agent rollout will ultimately require—every time tasks are orchestrated, information is retrieved, tools are invoked, in the end the CPU has to carry the load. This year, AMD signed a round of deals with OpenAI, Anthropic, and Meta, making its data center business the main driver of revenue; its stock price is up 186% year to date. Four months ago, it was still being asked whether it could catch up to Nvidia—now its market-cap number is essentially on par. This turnaround has come a bit too fast.
Next, we’ll have to see the delivery schedule for the MI400 batch of cards, and whether data center orders can hold up that market-cap level.
The story isn’t only happening on the GPU side. Meta’s AI assistant, Muse, launched in early September and shot to the No. 1 spot on the U.S. iPhone free chart. The market has begun to reassess just how much CPU capacity the agent rollout will ultimately require—every time tasks are orchestrated, information is retrieved, tools are invoked, in the end the CPU has to carry the load. This year, AMD signed a round of deals with OpenAI, Anthropic, and Meta, making its data center business the main driver of revenue; its stock price is up 186% year to date. Four months ago, it was still being asked whether it could catch up to Nvidia—now its market-cap number is essentially on par. This turnaround has come a bit too fast.
Next, we’ll have to see the delivery schedule for the MI400 batch of cards, and whether data center orders can hold up that market-cap level.