AMD, Market Cap Surpasses $900 Billion 'Three Times' Alone... Is It Eyeing $1 Trillion Following Nvidia?

▲ AMD, Artificial Intelligence (AI), Semiconductor/AI Generated Image

AMD's market capitalization surpassed $900 billion for the third time in less than a month. With its stock price soaring by about 150% this year, if it reaches Wall Street's highest target price of $700, it will join the ranks of semiconductor companies with a market cap of $1 trillion, following Micron.

According to investment media Stocktwits on July 9 (local time), AMD's stock price surged by approximately 8% during intraday trading, reaching $558.67, and its market capitalization recorded $910.63 billion. This marks the third time AMD's market cap has exceeded $900 billion, following June 15 and June 30. On June 30, it reached an all-time high of $584.73.

Wall Street raised AMD's target price consecutively, anticipating its growing position in the AI semiconductor market. Goldman Sachs raised AMD's target price from $450 to $640 this week and maintained its 'buy' rating. This follows an increase in May from $240 to $450, once again significantly raising expectations.

Goldman Sachs projected that AMD would expand its market share in the AI infrastructure market amid strong demand for graphics processing units and AI accelerators. AMD is positioning its MI series accelerators as an alternative to NVIDIA (NVDA) products, and large-scale AI investments from Microsoft (MSFT), Amazon (AMZN), and Google (Google) are supporting this demand, according to the analysis.

Cantor Fitzgerald raised AMD's target price from $500 to $700 and maintained its 'overweight' rating. It projects that AI infrastructure development will drive the semiconductor industry's growth cycle for several years, with industry revenue potentially exceeding $3.5 trillion by 2030. Assuming the number of outstanding shares remains constant, if AMD's stock price reaches $700, its market capitalization will also surpass $1 trillion.

Micron Technology (MU) first surpassed a $1 trillion market cap on May 26, and its market capitalization expanded to approximately $1.15 trillion after it increased its U.S. investment plan from $200 billion to $250 billion by 2035. AMD's stock price rose by about 150% this year, but it did not match Micron's 225% increase. Whether Wall Street's highest target price of $700 materializes has emerged as a key factor determining AMD's entry into the $1 trillion market cap club.

[Article Key Summary]

-AMD's stock price surged to $558.67 during intraday trading, surpassing a $900 billion market cap for the third time in less than a month.

-Goldman Sachs raised AMD's target price to $640, and Cantor Fitzgerald to $700, highlighting the growth in the AI infrastructure market.

-If AMD's stock price reaches $700 and the number of outstanding shares is maintained, it could surpass a $1 trillion market cap, following Micron.

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