Advanced Micro Devices stock hits record high, surpasses $1 trillion market cap

Advanced Micro Devices stock surged 9% on Monday, pushing shares to a record high and topping a $1 trillion market cap benchmark for the first time.

The chip giant's shares hit an intraday high of $613.92, which boosted the company's value just above $1 trillion.

AMD is riding a five-day winning streak, during which shares have gained about 24%. The recent rally has been a welcome sight for investors, who saw the stock fall last month after the company reported second-quarter earnings that beat expectations.

The company reported revenue of $11.54 billion during Q2, up 50% from $7.69 billion a year ago, and its artificial intelligence chips were at the heart of that growth. AMD's Data Center unit reported sales of $6.7 billion, up a whopping 107% from a year ago.

The chipmaker is having a blockbuster year, with the stock up more than 180%. But despite that impressive gain, AMD is still well behind AI chip leader Nvidia, which boasts a market cap of about $5.4 trillion.

The AI buildout that has fueled the surge in chip names this year is showing few signs of slowing, despite the public backlash against data centers and concerns about the underlying safety of large language models.