Intel jumped more than 13% to about $123 a share on Monday, leading a broad rally in CPU-focused chip stocks. AMD, Arm Holdings and Qualcomm all posted double-digit or near-double-digit gains, a move traders are linking to renewed excitement over AI agents driving CPU demand.
Intel was Monday's biggest mover, surging more than 13% to about $123 a share. The stock, which had already risen more than 5% last week, is now trading at levels last seen in early July.
CPU makers lead the rally
The gains stretched across the CPU side of the semiconductor group. Advanced Micro Devices climbed 9%, touching the $1 trillion market cap threshold, while Arm Holdings jumped more than 15%. AMD and Intel are longtime rivals in server CPUs built on the x86 instruction set, while Arm licenses its rival instruction set to chip designers such as Amazon and Nvidia.
Qualcomm shares rose more than 8% as the company pushes into the data center market with an Arm-based CPU. By contrast, Nvidia and Broadcom gained a more muted 2% and 1%, since neither is viewed primarily as a bet on CPU demand.
Meta's Muse app fuels the CPU story
The rekindled interest in CPU stocks is likely spilling over from buzz around Meta's Muse personal agent app, which automates tasks such as booking appointments and responding to emails. Muse debuted on Sept. 8 and has vaulted to the No. 1 free app on Apple's App Store over the past few days.
Consumer adoption of agents is drawing attention to how agentic systems drive demand for CPUs, which have been supply-constrained this year. Bernstein chip analyst Stacy Rasgon said the shift toward everyday users adopting agentic AI is being read as having the potential to "put the CPU shortage and CPU demand into overdrive." Unlike a traditional chatbot, which relies mainly on AI accelerators, agentic tasks involve more steps — planning, running code and accessing external tools — where CPUs come into play.
Meta shares extend their gain
Meta shares are up 18% since the Sept. 8 close, including a nearly 9% jump Monday. Muse offers two paid tiers, at $20 or $100 a month, alongside a free option. Wells Fargo analysts raised their price target on Meta to $796 from $640 and reiterated their buy rating ahead of the company's developer conference this week.
Not every reaction to Muse has been positive. Amazon has blocked the app from accessing its online marketplace, citing a violation of usage terms, according to the tech publication GeekWire.
Source: CNBC
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