AMD Nears $900B Market Cap as AI Demand Fuels Rally

AMD shares surged 3.1% to $537.57 Wednesday, flirting with a $900 billion valuation threshold as Morgan Stanley highlighted its cloud CPU positioning amid booming AI infrastructure demand. The stock needs to reach $551.94 to achieve the milestone—a level that would eclipse previous records.

The rally defied sector headwinds from Nvidia's new AI PC chip announcement, with Intel also gaining 4.5% as executives reported supply constraints for data center processors. AMD's 151% year-to-date gain reflects its transformation into an AI hardware contender, with Q1 revenue jumping 38% to $10.25 billion.

Market reaction underscores the fierce competition in accelerator chips, where AMD's MI300X now challenges Nvidia's dominance. Analysts note the $544 intraday high suggests investors are pricing in sustained cloud spending despite Nasdaq's 0.7% decline.