Meta Platforms has made a strong comeback. For much of the year, the company lagged behind, but the launch of its Muse AI assistant pushed the stock up sharply. Even so, chip stocks might still be a safer way to invest in the wider AI trend.
On Monday, Meta gained about $192 billion in market value as investors got excited about Muse’s early success. Muse is an AI agent that can help with tasks like booking doctor’s appointments or reserving flights. This shows that products that are easy for consumers to use can matter more than having the most advanced technology, something Meta has seen before.
However, this momentum might not continue. Other companies will likely launch their own AI assistants, and some could block Meta’s assistant from their platforms. For example, Amazon has already stopped Muse from making purchases on its site. It’s also uncertain how many people will want to pay for Muse in the long run.
On the other hand, chipmakers could benefit no matter which company leads in AI assistants. Intel, Arm, and Advanced Micro Devices all saw their stocks rise on Monday because investors expect that more AI services will mean higher demand for processors. Qualcomm and Nvidia are also set to gain as they grow their presence in the processor market.
It’s hard to predict which company or model will come out on top in the AI boom, but one thing is clear: the whole industry will need much more computing power as time goes on. Investors should remember this when choosing where to invest.
