Micron, Intel and AMD Add $2 Trillion Combined Value in Second Quarter

Micron, Intel and Advanced Micro Devices gained about $2 trillion in combined market cap in the second quarter as investors widened their artificial intelligence portfolios. Micron rose over 240% during the quarter, Intel jumped 216%, and AMD's stock price nearly tripled. The rally occurred as investors expanded beyond Nvidia into companies making semiconductors complementary to AI infrastructure.

Micron Adds $920 Billion in Market Cap

Micron, one of three major computer memory producers, rose over 240% during the quarter, adding roughly $920 billion in market cap. The three companies are now the 10th, 11th and 12th most valuable U.S. tech companies.

Intel and AMD Post Triple-Digit Gains

Intel, the legacy maker of central processing units (CPUs), jumped 216% in the quarter, resulting in an added $480 billion in market cap. Intel is building U.S. chip factories while simultaneously benefiting from renewed demand for CPUs as more AI moves to devices.

AMD, Intel's rival in CPUs, added $615 billion in value after its stock price nearly tripled. AMD also makes graphics processing units, though it's far behind Nvidia in that market.

Micron Reports Quadrupled Revenue in Third Quarter

Last week, Micron reported that revenue in the latest quarter more than quadrupled due to skyrocketing memory prices from AI chipmakers. Micron's gross margin, the profit left after accounting for the cost of goods sold, jumped to 84.9% in the third quarter from 39% a year earlier.

Nvidia and Hyperscalers Show Mixed Performance

While AI chipmaker Nvidia remains the biggest company by market cap and continues to notch massive revenue growth, the stock only gained 15% in the second quarter. Its hyperscaler customers — Amazon, Alphabet, Meta and Microsoft — showed mixed results in the period, with Meta falling by almost 2% for the worst performance in the group, and Alphabet leading the pack by gaining 24%.

Broader Semiconductor Sector Posts Strong Gains

Other parts of the AI infrastructure supply chain aside from memory and processors also boomed. Marvell, which makes networking gear, climbed about 200%. Arm, which supplies technology and designs to other chipmakers, rose 134% in the quarter. The VanEck Semiconductor ETF (SMH) rose 71% in the period, the fund's best quarterly performance since it started trading in 2000.

Barclays analyst Anshul Gupta wrote in a note on Tuesday that "the rotation out of AI hyperscalers into AI enablers has shifted investors' euphoria into semis, driving spectacular rallies."

FAQ

How much combined market cap did Micron, Intel and AMD gain in the second quarter?

The three companies gained about $2 trillion in combined market cap during the second quarter.

What was Micron's gross margin in the third quarter?

Micron's gross margin jumped to 84.9% in the third quarter from 39% a year earlier, as reported last week.