Investing.com -- Advanced Micro Devices briefly surpassed $1 trillion in market capitalization for the first time on Monday, becoming the fourth U.S. chipmaker to reach the milestone as investors increase their bets on the company's growing presence in AI computing.

The Santa Clara, California-based company's shares rose 9% to $610, after reaching an all-time high of $613.92, pushing its valuation just over $1 trillion.

AMD joins Nvidia, Broadcom, and Micron as the only U.S. chipmakers to achieve a $1 trillion valuation. Nvidia first crossed the mark in 2023 and is now valued at more than $5 trillion, making it the world's most valuable company.

AMD is widely regarded as the closest competitor to Nvidia for graphics processing units. The company has increased the pace of its AI product launches and expanded beyond selling individual chips to offering complete systems that combine processors, networking gear, and related hardware.

The company is also seeing increased demand for central processing units used alongside graphics processors in servers handling inference, helping it gain market share from Intel (NASDAQ: INTC).

Early last month, AMD forecast quarterly revenue above Wall Street estimates, but the projection fell short of investor expectations, sending its stock down more than 7% that day. Since then, the stock has climbed more than 26%.