Advanced Micro Devices (NASDAQ: AMD) crossed a $1 trillion market capitalization for the first time Monday as its shares surged 9.95% to $615.52, extending a rally driven by expectations for stronger AI infrastructure and server-chip demand.
The stock reached a new 52-week high of $616.68 and traded 39.4 million shares, compared with an average volume of about 25.0 million.
Monday marked AMD’s fifth consecutive gain. The shares have advanced about 24.7% from their Sept. 14 close of $493.41, based on Nasdaq historical price data.
The latest leg of the rally coincided with broad gains across semiconductor stocks after Meta Platforms’ Muse AI agent drew renewed attention to the computing requirements of increasingly autonomous AI applications. Intel and Arm also rallied sharply, while falling Treasury yields provided additional support to growth stocks.
Meta Muse Sharpens Focus on AI Inference and Server CPUs
Meta introduced Muse as a personal AI agent capable of carrying out tasks on behalf of users through cloud-based computing infrastructure.
Its early adoption has reinforced an emerging investment thesis around AI inference: as agents perform more continuous and complex tasks, data centers may require not only additional accelerators but also more general-purpose CPU capacity for orchestration, data processing and system management.
That matters for AMD because the company sells both Instinct AI accelerators and EPYC server processors.
Jefferies analyst Jacky He said wider adoption of AI agents could support server CPU demand as inference workloads expand, according to Bloomberg.
Muse itself has not been tied to a newly announced AMD order, making the development more relevant as a broader demand signal than as a fresh company-specific contract.
AMD’s Existing Meta Deal Provides a Direct Commercial Link
AMD already has substantial exposure to Meta’s infrastructure spending.
The companies announced a multi-year agreement in February covering deployment of up to 6 gigawatts of AMD Instinct GPUs, with the first gigawatt scheduled to begin shipping in the second half of 2026.
That initial deployment is expected to use custom MI450-based accelerators, AMD’s Helios rack-scale platform, and sixth-generation EPYC “Venice” processors.
As part of the agreement, AMD also issued Meta a performance-based warrant to purchase up to 160 million AMD shares at $0.01 per share. The warrant vests in tranches tied to Instinct GPU purchase milestones and specified AMD stock-price thresholds, with the first tranche vesting upon shipment of the initial 1-gigawatt equivalent and full vesting contingent on purchases reaching 6 gigawatts. Each vested tranche is also subject to additional technical and commercial conditions before becoming exercisable. As of June 27, no warrant shares had vested or become exercisable.
The arrangement gives AMD exposure to both GPU and CPU spending as Meta expands the computing capacity supporting its AI products.
AMD Data Center Revenue More Than Doubles to $6.7 Billion
AMD’s recent share-price gains have come alongside accelerating financial growth.
The company reported second-quarter revenue of $11.54 billion, up 50% from a year earlier. Data Center revenue more than doubled to $6.7 billion, accounting for 58% of total sales.
Growth was driven by demand for EPYC processors and Instinct accelerators as hyperscale customers increased spending on AI and cloud infrastructure.
Chief Executive Lisa Su has said AMD entered the second half with accelerating EPYC demand, growing Instinct deployments, and the beginning of its Helios ramp.
AMD’s data-center strategy spans CPUs, GPUs, networking, software and rack-scale systems for large customers.
AMD Guides for About $13 Billion in Third-Quarter Revenue
For the third quarter, AMD has guided to revenue of about $13 billion, plus or minus $300 million, representing roughly 41% year-over-year growth at the midpoint. Non-GAAP gross margin is expected to be approximately 56%.
The company has also pointed to accelerating EPYC demand, expanding Instinct deployments, and the Helios ramp as drivers heading into the second half. Meta-related shipments under the companies’ multi-year agreement are scheduled to begin in the second half of 2026.
