This article first appeared on GuruFocus.
Advanced Micro Devices (NASDAQ:AMD) briefly crossed a $1 trillion market capitalization for the first time Monday as surging demand tied to AI agents pushed investors toward central processing unit makers. AMD shares jumped more than 8% to a record $615.99 before closing near $609.65, leaving the chipmaker valued at roughly $995 billion. The milestone suggests investors are broadening their AI bets beyond graphics processors as agentic AI workloads create a potentially larger role for CPUs.
AMD became the fourth U.S. chipmaker to cross the $1 trillion threshold, joining Nvidia (NASDAQ:NVDA), Broadcom and Micron (NASDAQ:MU). The enthusiasm extended across CPU suppliers, with Intel (NASDAQ:INTC) jumping 12.03% to $121.67 and Arm (NASDAQ:ARM) Holdings surging 15.47% during the same session.
The catalyst is the rapid adoption of Meta (NASDAQ:META) Platforms' Muse consumer AI app, which recently climbed to the top of the U.S. iPhone App Store. Running live software agents requires substantial CPU capacity alongside the graphics processors that have dominated the first phase of the AI infrastructure boom.
That demand is already tightening supply....