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"Investment funds flock to AI sector due to Fed rate hike…AMD is a representative stock"
The market capitalization of AMD, Nvidia's rival, has surpassed $1 trillion (approximately 1,400 trillion won) for the first time.
On the 21st (local time) in the New York stock market, AMD's stock price surged by about 9% compared to the previous day, reaching $615.99 as of 11 AM Eastern Time, setting a new all-time high.
As a result, AMD's market capitalization also exceeded $1 trillion, reaching around $1.005 trillion.
This makes AMD the fourth US semiconductor company to join the '1 Trillion Dollar Market Cap Club,' following Nvidia, Broadcom, and Micron.
However, after reaching its peak on this day, AMD's stock price gave back some of its gains, staying around $610 as of 1 PM Eastern Time, and its market capitalization is currently around $997 billion, slightly below $1 trillion.
AMD's stock price has been on an upward trend for five consecutive days recently, rising by about 24%, and its increase since the beginning of this year amounts to 180%.
This surge in stock price is attributed to the continued enthusiasm for building artificial intelligence (AI) infrastructure.
This is because the demand for graphics processing units (GPUs), which are fundamental for AI training and inference, as well as central processing units (CPUs), whose importance has once again increased with the proliferation of AI agents, has risen simultaneously, leading to strong performance for AMD, which produces both products.
On this day, Intel's stock price also surged by more than 10%, Qualcomm rose by about 7%, and the Philadelphia Semiconductor Index, composed of major semiconductor stocks, also increased by 3.5%.
Thomas Hayes, chairman of Great Hill Capital, an asset management firm in New York, analyzed, "Funds are moving back into AI trades," adding, "Investors believe that AI is the only sector that will work even amid an economic slowdown caused by the Federal Reserve (Fed), and AMD is a representative stock for this."
Lisa Su, AMD's CEO, recently announced in an earnings call her plan to double data center-related revenue by 2027.
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