Advanced Micro Devices Inc. (NASDAQ: AMD) crossed the $1 trillion market value milestone on Monday. This valuation increase was attributed to the company's strategy regarding agentic AI workloads and the success of Meta's AI agent, Muse.
AMD management has long argued that agentic AI workloads rely heavily on central processing units (CPUs) rather than accelerators. The company believes that tasks involving chaining tool calls, orchestrating steps, and handling logic between model invocations require general-purpose compute, which is the focus of AMD's EPYC franchise. On the second-quarter earnings call, AMD CEO Lisa Su stated that agentic AI and agentic sandboxes represent the largest portion of the total addressable market (TAM).
The catalyst for this market movement was Meta’s personal AI agent, Muse. According to Sensor Tower data, Muse became the most downloaded free iPhone app in the United States for three consecutive days. Because AI agents perform tasks across many steps, or inference, which runs heavily on server CPUs, the popularity of Muse provided a mass-market data point supporting AMD's projections for the server CPU market.
In the second quarter ended June 27, AMD reported revenue of $11.5 billion, a 50% increase year-over-year. Non-GAAP diluted earnings per share rose 246% to $1.66. Data center revenue specifically more than doubled, increasing 107% to $6.7 billion.
AMD has a direct commercial relationship with Meta. Their February agreement covers planned AMD graphics-chip deployments across infrastructure with up to six gigawatts of power capacity.
