Shares of the semiconductor company Advanced Micro Devices (NASDAQ: AMD) 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.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
AMD’s stock was up by 9.4% as of 10:57 a.m. ET.
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.
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.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of September 21, 2026.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Meta Platforms. The Motley Fool has a disclosure policy.
Why AMD Stock Is Rising Fast Today was originally published by The Motley Fool
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
