AMD crosses $1 trillion as Meta Muse sparks AI chip rally

Semiconductor stocks surged Monday as the rapid adoption of Meta’s Muse AI agent fueled expectations that agentic AI could drive another wave of demand for computing power.

AMD shares jumped as much as 10%, pushing the chipmaker above $1 trillion in market value for the first time. Intel gained more than 14%, Arm climbed 17%, and the Philadelphia Semiconductor Index advanced 3.9%, extending its winning streak to five sessions.

The rally followed Meta’s Muse reaching the top position among free apps on Apple’s US App Store after launching earlier this month. Meta shares also gained about 12% Monday.

Muse is designed to carry out tasks on behalf of users rather than simply respond to prompts. Meta says the agent can book travel, fill out forms, shop online and manage longer projects while continuing to work after users close the app.

The early adoption has renewed investor interest in companies supplying CPUs and other infrastructure required to run AI agents. Unlike traditional chatbots, agents can generate sustained inference and orchestration workloads as they independently carry out multiple steps across applications and websites.

Meta is also a major AMD customer, accounting for about 5.5% of the chipmaker’s revenue, according to Bloomberg data.

AMD has gained roughly 30% in September after falling nearly 26% between its June peak and July trough as concerns around AI spending and returns weighed on semiconductor stocks.

The broader move reflects expectations that consumer adoption of AI agents could expand demand beyond the GPUs that have dominated the first phase of the AI infrastructure boom. Server CPUs from AMD and Intel could benefit as agents generate more continuous computing workloads.

Meta launched Muse on September 8 as a personal AI agent powered by its Muse Spark model. The company said users remain in control of sensitive actions, with Muse requesting approval before activities including making purchases or sending emails.