By Kit Norton
Nvidia CEO Jensen Huang recently said Marvell Technology could become the next trillion-dollar stock. Well, it looks like Advanced Micro Devices' investors would like a word on that.
AMD shares advanced 3.1% to $537.57 on Wednesday, trading as high as $544.04 intraday and on pace for a record closing high, as investors shook off their Nvidia announcement hangover and broadly pushed red-hot chip stocks higher. The Nasdaq was down 0.7%.
AMD stock is currently approaching a $900 billion market value, a benchmark the stock has never hit before. Shares need to hit $551.94 to claim that market value, according to Dow Jones Market Data.
Advanced Micro Devices' market value at the closing bell on Tuesday was $850 billion.
AMD, Intel, and other chip stocks fell sharply on Monday after Nvidia unveiled an artificial intelligence chip designed for personal computers -- which could hit central processing unit, or CPU, providers.
Along with AMD, Intel stock was roaring back on Wednesday, up 4.5% and set to snap a five-day losing streak.
Intel CEO Lip-Bu Tan, in his keynote speech at the Computex conference in Taiwan on Tuesday, said there is strong CPU demand throughout the market and that in the past four weeks other CEOs have been calling him asking for more CPUs, the Taipei Times reported.
A Morgan Stanley analyst team, led by Shawn Kim, on Tuesday wrote that surging memory prices and supply scarcity are becoming a cross-sector risk as AI reprices a critical input across the digital economy.
"What began as an AI infrastructure bottleneck is now spreading into hardware margins, device affordability, cloud costs, inflation, and policy," Kim wrote.
However, the Morgan Stanley analysts believe AMD is in a good position to capitalize.
"Agentic AI-driven CPU demand structurally favors AMD in cloud share gains," Kim wrote, adding that investors should have Nvidia and Micron Technology exposure where AI token growth capital expenditures can more directly translate into earnings upside.
Wall Street's view on AMD is broadly bullish. Of the 58 analysts polled by FactSet, the stock has an average Overweight rating with a $491.32 price target.
AMD stock has surged 151% this year and has gained 354% over the past 12 months.
Write to Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
June 03, 2026 11:31 ET (15:31 GMT)
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