Advanced Micro Devices (AMD) briefly climbed past $1 trillion in market capitalization ​for the first time on Monday, marking a milestone for the chipmaker, which joined a small group of competitors with a similar valuation as investors bet on its expanding role in artificial intelligence computing.

The company's shares were last up 9% at $610, after surging to an all-time high of $613.92, creating a valuation of just over $1 trillion.

The milestone caps a stellar rally for the Santa Clara, California-based AMD, regarded as the closest rival to AI bellwether Nvidia for graphics processing units (GPUs).

It becomes the fourth U.S. chipmaker to top a $1 trillion valuation, after Nvidia, Broadcom and Micron. Nvidia ⁠crossed ⁠the mark in 2023 and is now the world's most valuable company, worth more than $5 trillion.

AMD has accelerated its AI product launches and moved beyond selling individual chips to offering complete systems that combine processors, networking gear and related hardware, helping it compete ⁠with Nvidia's products.

The company is also benefiting from rising demand for central processing units used alongside graphics processors ​in servers handling inference. That has helped AMD take ​market share from Intel.

Early last month, AMD forecast quarterly revenue above Wall Street ⁠estimates, ‌which fell ‌short of lofty investor expectations, sending ⁠its stock down over ‌7% on the day. Since then, it has leaped ​over 26%.

Most chip ⁠stocks surged on Monday, with ⁠Intel jumping around 11%, Qualcomm rising 4.1% and ⁠the broader chips ​index gaining 2.6% to a one-month high.