AMD briefly topped $1 trillion market value; analyst sees ongoing run

Advanced Micro Devices (AMD) briefly crossed the $1 trillion market value threshold last week, with shares rallying nearly 13%. This milestone highlights the chipmaker's significant turnaround under CEO Lisa Su.

CNBC analyst Jim Cramer stated on Monday that AMD's remarkable run under CEO Lisa Su is far from over, identifying the burgeoning field of agent artificial intelligence (AI) as a major growth catalyst for the company.

The stock's surge last week, which briefly pushed its market cap over $1 trillion before slipping back, has been partly fueled by the increasing adoption of AI agents. Cramer argues that the growing demand for these agents will significantly boost the need for high-end central processing units (CPUs), a market where AMD is well-positioned.

AMD's current standing represents a stark contrast to its situation when Lisa Su took over as CEO in October 2014. At that time, the company's valuation was just over $2.5 billion, and it was losing ground to competitor Intel. Under Su's leadership, AMD has refocused its strategy and steadily gained market share.

Beyond its strength in CPUs, AMD has also established a presence in the graphics processor (GPU) market for AI workloads, challenging industry leader Nvidia. Cramer suggests the market is large enough to accommodate multiple strong players, noting that AMD has secured significant commitments for its GPUs from major AI spenders like Meta and OpenAI.