Shares of the semiconductor company Advanced Micro Devices (AMD +9.95%) surged on Monday morning after it was recently reported that Meta's new AI agent app, Muse, recently reached the #1 spot among free apps on Apple's App Store.
AI agents like Muse rely heavily on central processing units (CPUs) to complete their tasks, which could boost demand for AMD's CPUs. AMD's management is bullish on long-term CPU sales, and the popularity of Meta's Muse lends additional credibility to their opinion.
AMD's stock was up by 9.4% as of 10:57 a.m. ET.
Image source: The Motley Fool.
AI-fueled CPU demand
AI agents are already becoming an important tool in many productivity apps, and they're increasingly popular among consumers as well, helping them complete everyday tasks like booking travel or shopping online.
Earlier this year, Meta and AMD expanded their strategic partnership to build additional AI infrastructure capacity, leveraging AMD's CPUs and GPUs. Both types of processors are important for AI processing, but CPUs are especially efficient at completing AI agent tasks.
AMD's leadership recently stressed how important CPUs could be to the company's future, saying the server CPU market could grow by 50% by 2030, reaching a total addressable market (TAM) of $220 billion.
AMD CEO Lisa Su said on the company's Q2 2026 (which ended June 27) earnings call,
"[W]e actually see this agentic AI or these agentic sandboxes being the largest piece of the TAM. It's the fastest-growing piece. It's also the smallest piece today."
With Muse topping the free apps list on Apple's App Store, AMD shareholders were excited to see evidence that agentic AI is beginning to take root with consumers.
NASDAQ: AMD
Key Data Points
More good times are likely ahead for AMD stock
AMD is already benefiting from its unique position in the tech space, providing both GPU and CPU designs to tech companies. The company's sales jumped 50% to $11.5 billion, and non-GAAP diluted earnings per share rose 246% to $1.66 in the second quarter.
And with early indicators showing that agentic AI is accelerating among consumers, AMD's optimism about the expanding CPU market seems well-founded.
