Stocks
September 25, 2026
Oracle Stock Falls 3.4% on Power Delay Fears as Japan Unit Jumps 7%
- AMD stock jumped 9.9% to a record $615.52, pushing its market cap above $1 trillion for the first time
- Nasdaq gained 2.26% to close at an all-time high of 27,122.09 as technology and semiconductor stocks rallied
- Nvidia stock traded at 16.3 times forward earnings, its lowest valuation in at least a decade, despite being worth over $5 trillion
AMD stock jumped nearly 10% on Monday, ending the session at a record and putting the chipmaker in a club few companies ever reach. The move came during a sharp rebound in technology shares, with Nasdaq also finishing at an all-time high. But the AMD market cap milestone was only part of the story. A surprising valuation gap with Nvidia stock may say more about where investors see the next opportunity.
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AMD Stock Enters the $1 Trillion Club
AMD closed 9.9% higher at $615.52, lifting its valuation above $1 trillion for the first time. This makes it the fourth US semiconductor company to reach the milestone, following Nvidia, Broadcom, and Micron.
The move caps a notable transformation. AMD was worth approximately $255 billion at the same point last year, according to reports. Its shares have climbed 185% in 2026, far ahead of the Nasdaq’s 15.8% gain.
Investors are betting that AMD can capture a larger share of spending on AI accelerators, server processors and networking equipment. The company has also moved beyond selling individual chips by building complete AI systems capable of competing more directly with Nvidia.
Recent results support part of that enthusiasm. AMD reported record second-quarter revenue of $11.5 billion, up 50% from a year earlier. Data center products generated 58% of total revenue. AMD finance chief Jean Hu said in the company’s earnings release,
“We expect Data Center sales to accelerate in the second half of 2026.”
Nasdaq Breaks Record as AI Trade Returns
AMD was not rallying alone. Nasdaq jumped 2.26% to a record closing level of 27,122.09, while the S&P 500 gained 1.49%. Intel climbed nearly 12%, Arm advanced 17.1%, and Meta added around 11%.
Lower oil prices and easing Treasury yields helped revive demand for growth stocks, but semiconductors supplied much of the momentum. Great Hill Capital chairman Thomas Hayes said,
“Money is moving back into the AI trade.”
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Nvidia Stock Carries an Unusually Low Multiple
The numbers look very different for the two chipmakers. AMD traded at about 41 times forward earnings, just below its 10-year average of 44. Meanwhile, Nvidia stock was priced at roughly 16.3 times expected earnings despite the company being worth more than $5 trillion.
This is Nvidia’s lowest profit multiple in at least a decade. It does not suggest that its business has suddenly weakened. Earnings expectations have simply risen much faster than the valuation investors are placing on them.
AMD now owns the market’s newest trillion-dollar milestone. Nvidia’s compressed P/E could determine where investors look next.
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