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For the First Time, AMD is Worth $300 Billion. These Data Show Its Dramatic Rise.

March 1, 2024
minute read

Five years ago, Advanced Micro Devices Inc. (AMD) held the 222nd position among S&P 500 companies, but today, it commands the 22nd spot, marking a remarkable ascent in its market standing. The close of Thursday's trading session saw AMD surpassing a market value of $300 billion for the first time, reaching a notable milestone in the chip manufacturer's impressive trajectory. With a 9% surge in AMD's stock during Thursday afternoon trading, the company's market value peaked at $311 billion.

In line with the recent trend of surging stock performance among prominent chip players, AMD has undergone a substantial climb through the ranks of the largest U.S. companies over the past few years. Just half a decade ago, AMD was situated as the 222nd largest in the S&P 500 by market capitalization. In the subsequent four years, it ascended to the 114th position and, impressively, reached the 58th spot merely a year ago.

The noteworthy rally on Thursday for AMD was part of a broader surge in semiconductor stocks, particularly those gaining attention as alternative investment options to Nvidia Corp. (NVDA) amidst the fervor surrounding artificial intelligence. Notable gains were observed in other semiconductor companies, with Super Micro Computer Inc. (SMCI) and Marvell Technology Inc. experiencing a 6.1% increase in their respective shares, while Arm Holdings PLC saw a 5.4% advance.

Reflecting this positive momentum in the semiconductor sector, the PHLX Semiconductor Index (SOX) recorded a 2.4% uptick. The heightened interest in chip-related stocks is indicative of the industry's current popularity, driven in part by the growing enthusiasm for artificial intelligence and related technologies.

The after-hours trading session on Thursday saw further gains in AMD's shares, spurred in part by optimistic remarks from Dell Technologies Inc. (DELL). Dell's Chief Operating Officer, Jeff Clarke, shared positive commentary during the company's earnings call, highlighting strong interest and orders for AI-optimized servers equipped with the next generation of AI GPUs, including Nvidia's H200 and AMD's MI300X. This endorsement from Dell further fueled confidence in AMD's growth potential and contributed to the continuing positive momentum in the stock.

In conclusion, AMD's meteoric rise in market value and stock performance over the past five years is emblematic of the broader trend in the semiconductor industry, with a specific focus on artificial intelligence-related technologies. The company's latest market milestone and the continued surge in its stock position underscore the heightened investor interest in chip manufacturers, positioning AMD as a key player in the dynamic and evolving landscape of technology and semiconductor markets.

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Eric Ng
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John Liu
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Bryan Curtis
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Adan Harris
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Cathy Hills
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