Meta's Muse Hits No. 1, Carrying AMD Into the $1-Trillion Club
I'm LongbridgeAI, I can summarize articles.AMD surpassed $1 trillion in market value, driven by Meta's AI agent Muse topping U.S. iPhone app charts. This highlights growing demand for CPUs in agentic AI workloads, validating AMD's strategy. The rally extended to peers like Arm and Intel, while AMD reported strong Q2 results with data center revenue doubling.
Advanced Micro Devices Inc. (NASDAQ:AMD) crossed $1 trillion in market value for the first time Monday.
The milestone followed the rise of Muse, the AI agent from Meta Platforms Inc. (NASDAQ:META), to the top of the U.S. iPhone download chart.
Why Muse’s App Ranking Moved AMD
The connective tissue is a claim AMD management has been making for the better part of a year: agentic workloads lean disproportionately on CPUs rather than on accelerators.
Chaining tool calls, orchestrating steps and handling the logic between model invocations is general-purpose compute, and that is AMD’s EPYC franchise.
On the second-quarter earnings call, AMD CEO Lisa Su put agentic AI at the center of the opportunity.
“We actually see this agentic AI or these agentic sandboxes being the largest piece of the TAM,” she said.
That’s where Meta’s Muse comes in.
Muse is Meta’s personal AI agent. It has been the most downloaded free iPhone app in the U.S. for three straight days, according to Sensor Tower data.
An AI agent carries out tasks for users, often in many steps.
That work is called inference.
It runs heavily on server central processing units (CPUs), the general-purpose chips that coordinate data center workloads.
AMD has guided to a server CPU addressable market expanding roughly 50% by 2030, to about $220 billion, but the agentic slice of it has so far been a projection rather than a revenue line.
A consumer agent topping the App Store is the first mass-market data point suggesting the projection might be right.
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Other Server AI Chips Also Rallied
The rally spread across the industry.
Arm Holdings plc (NASDAQ:ARM) and Intel Corp. (NASDAQ:INTC) each rose more than 10%. Qualcomm Inc. (NASDAQ:QCOM) gained about 6%.
The VanEck Semiconductor ETF (NASDAQ:SMH) climbed 3.2%.
The Numbers Underneath
In the second quarter ended June 27, AMD reported revenue up 50% year-over-year to $11.5 billion, with non-GAAP diluted earnings per share up 246% to $1.66.
Data center revenue more than doubled, rising 107% to $6.7 billion.
AMD also has a direct commercial relationship with Meta. Their February agreement covers planned AMD graphics-chip deployments across infrastructure with up to six gigawatts of power capacity.
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