Advanced Micro Devices, Inc (AMD) stock price climbed to an all-time high of $616.69 on Monday, September 21, 2026, while closing at $615.52, 9.95% (55.70 points) higher. AMD’s market cap also breached the highly coveted $1 trillion mark, becoming one of the few in the world to boast a 13-digit valuation. Let’s discuss why AMD’s stock price is rallying and if the upswing can continue.
Why Is AMD’s Stock Price Rallying?
AMD’s stock price has seen consistent gains over the last five trading days, gaining nearly 25%. The latest price surge comes after a supply-chain report hinted at a potential price spike for AMD chips in the fourth quarter of this year. The expected price surge is likely tied to the rising cost of silicon wafers.
AMD saw a dip last month soon after its quarterly earnings. The dip was likely due to some investors being unsatisfied with the numbers, despite revenue beating expectations. Many anticipated AMD’s Helios AI stack to make a bigger impression on the numbers. However, other analysts say that the Helios chips could factor in by the fourth quarter of this year. AMD reported $11.54 billion in revenue during Q2, up by nearly 50% from $7.69 billion a year ago.
The August dip was further fueled by Elon Musk stating that SpaceX would build exclusively on Nvidia hardware. However, AMD seems to have navigated from the dip and is seeing quite an upswing.
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AMD is one of the biggest beneficiaries of the ongoing AI boom. CEO Lisa Su expects data center sales to double in 2027. Given the unwavering demand for AI chips, AMD will likely continue its upward momentum over the coming months. However, many analysts warn that we may be in the middle of an AI bubble. Some experts say that the surge in AI spending is not sustainable, and that we may face a bubble burst soon.