AMD clears $1 trillion market cap on record earnings and hyperscaler deals

Advanced Micro Devices hit a $1 trillion market cap for the first time, joining competitors like Nvidia, as its stock continued a five-day win streak with a nearly 10% gain.

Fortune reported it was a big day for chip stocks, most of which closed up on optimism that Muse, Meta's new personal AI agent, will sell more semiconductors.

The AI rally lifted the Nasdaq Composite by 2.26% on Monday for a record close, the index's first since June.

Meta's Muse agent leapt to the top of app charts roughly two weeks after release, and its popularity helped push up chip stocks by focusing attention on the importance of CPUs for agentic AI.

AMD posted record non-GAAP earnings per share of $1.66 for the second quarter versus consensus of $1.61, with total revenue up 50% year over year to a record $11.5 billion against analyst projections of approximately $11.34 billion.

AMD's Data Center segment revenue more than doubled year over year to $6.7 billion on demand for EPYC server CPUs and Instinct AI accelerators.

AMD projected second-half 2026 server CPU revenue growth of 80% year over year and 70% in 2027, and expects data center revenue to more than double in 2027 with AI GPUs growing well over 100%.

AMD said Microsoft will deploy its Helios rack-scale AI systems across Azure AI services beginning in the second half of 2026.

Anthropic plans to deploy up to 2 gigawatts of Instinct MI450 GPUs in AMD's Helios system beginning in the first half of 2027, a deal that could be worth tens of billions of dollars over time, and AMD committed to invest up to $5 billion in Anthropic.

AMD's partnership with Meta could see the social media company own up to 10% of AMD in the future.

AMD's 185% year-to-date gain is a little over eight times Nvidia's 22%.

Meta's network has 3.6 billion daily active users, which Fortune cites as the lock-in effect behind optimism on Muse.

Data center revenue of $6.7 billion was 58% of AMD's $11.5 billion second-quarter total.

Amazon said on Monday that it blocked Meta's new Muse personal AI agent, launched two weeks earlier, after trying to get Meta to voluntarily exclude the Amazon retail storefront from its shopping activity.

AMD beat consensus by about 3% on non-GAAP EPS and about 1.4% on revenue.

"Continued access by an unauthorized AI agent violates Amazon's Conditions of Use, to which our customers have agreed."

On Muse launch day Meta said the AI agent "has no visibility into people's passwords or payment methods" and that shared credentials "go into secure storage, so Muse can use them without seeing them".

Amazon sued Perplexity over its Comet browser and has blocked similar agents from Google and OpenAI.

Microsoft and Anthropic account for 85% of Nscale's $103 billion in total contract value.

A 9.9% gain into a first close above $1 trillion implies AMD was worth about $910 billion before Monday's session, so about $90 billion of market value was added in the day.

Four times the June quarter's $11.5 billion of revenue is $46 billion, putting a $1 trillion market cap at about 22 times that annualised run rate.

Microsoft and Anthropic's 85% share of Nscale's $103 billion total contract value is about $88 billion.

Intel closed up 12% on Monday, AMD ended the day up 10%, and Arm, which licenses chip designs to others, was up 17%.

"an alarming trend not seen since 1999 was happening under the surface"