Advanced Micro Devices (AMD) briefly crossed $1 trillion in market capitalisation for the first time on Monday, joining a select group of chipmakers to reach the milestone as investors bet on its growing role in artificial intelligence computing. 92, briefly lifting the company’s valuation above $1 trillion.

The milestone capped a sharp rally for the Santa Clara, California-based company, widely considered Nvidia’s closest competitor in graphics processing units. For live updates on US Markets, click hereAMD became the fourth US chipmaker to surpass a $1 trillion valuation, after Nvidia, Broadcom and Micron.

Nvidia crossed the threshold in 2023 and is now the world’s most valuable company, with a market value exceeding $5 trillion. The company has accelerated its AI product launches and expanded beyond individual chips into complete systems combining processors, networking equipment and related hardware, strengthening its ability to compete with Nvidia.

AMD is also benefiting from rising demand for central processing units used alongside graphics processors in servers running AI inference workloads. The trend has helped the company gain market share from Intel.

Early last month, AMD forecast quarterly revenue above Wall Street estimates, but the outlook failed to meet elevated investor expectations, sending its shares down over 7% that day. Other chip stocks also advanced on Monday.

6% to a one-month high.