A Dramatic Rise Unfolds in Market Value As AMD Hits $300 Billion Milestone

Half a decade ago, Advanced Micro Devices Inc. (AMD) occupied the 222nd spot among S&P 500 companies. Today, it boasts the 22nd position, marking an impressive rise in its market stature.

Thursday’s trading session saw AMD surpassing the $300 billion market value threshold for the first time, a significant achievement in the chip manufacturer’s journey. With a 9% surge in AMD’s stock during Thursday afternoon trading, the company’s market value peaked at $311 billion.

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The semiconductor sector surges: AMD, Super Micro, and Marvell see notable gains. (Credits: AMD)

In line with the recent trend of robust stock performance among leading chip players, AMD has made notable strides in climbing the ranks of the largest U.S. companies in recent years. Just five years ago, AMD ranked as the 222nd largest in the S&P 500 by market capitalization. Over the subsequent four years, it ascended to the 114th position and, notably, reached the 58th spot a year ago.

Thursday’s remarkable rally for AMD was part of a broader surge in semiconductor stocks, particularly those emerging as alternative investment options to Nvidia Corp. (NVDA) amid the buzz surrounding artificial intelligence. Other semiconductor companies also saw notable gains, with Super Micro Computer Inc. (SMCI) and Marvell Technology Inc. witnessing a 6.1% increase in their respective shares, while Arm Holdings PLC advanced by 5.4%.

This positive momentum in the semiconductor sector was reflected in the PHLX Semiconductor Index (SOX), which recorded a 2.4% uptick. The heightened interest in chip-related stocks underscores the industry’s current popularity, fueled in part by the growing excitement surrounding artificial intelligence and related technologies.

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Dell’s optimism boosts AMD shares in after-hours trading, highlighting AI server demand. (Credits: Dell)

During the after-hours trading session on Thursday, AMD’s shares continued to climb, partially fueled by optimistic remarks from Dell Technologies Inc. (DELL). Jeff Clarke, Dell’s Chief Operating Officer, expressed positivity during the company’s earnings call, highlighting robust interest and orders for AI-optimized servers featuring the next generation of AI GPUs, including Nvidia’s H200 and AMD’s MI300X. This endorsement from Dell bolstered confidence in AMD’s growth prospects and added to the ongoing positive momentum in the stock.

AMD’s impressive ascent in market value and stock performance over the past five years mirrors the broader trend in the semiconductor industry, particularly in artificial intelligence-related technologies. The company’s recent market milestone and its sustained stock surge underscore heightened investor interest in chip manufacturers, positioning AMD as a pivotal player in the dynamic and evolving landscape of technology and semiconductor markets.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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