Meta's Muse sparks tech rally; Arm surges 15%

The rally follows reports from The Information that OpenAI is scrambling to develop its own Muse-like consumer agent, which investors read as a sign that an industry-wide rush to bring autonomous capabilities to the consumer market is underway. That competitive context helps explain why the chip sector moved so sharply: if every major player needs to build agentic assistants, the hardware mix required to run them may shift.

The market's enthusiasm is also being validated by user adoption metrics. Wells Fargo's Ken Gawrelski cited SensorTower data pointing to an unprecedented download and active user trajectory for the standalone Muse app during its first 12 days in the U.S., and he raised his Meta price target from $640 to $796 while bumping his 2027 earnings multiple assumption. The stage is now set for Wednesday night, when Meta CEO Mark Zuckerberg is scheduled to deliver his keynote address at the annual Meta Connect conference.

Whether the rally holds may hinge on whether Zuckerberg's keynote delivers concrete details that match the market's expectations, and whether the early app momentum shown by SensorTower translates into sustained usage. For chipmakers like Arm, Intel and AMD, the bet is that agentic AI's CPU-heavy architecture becomes the standard as these assistants reach mainstream users — a scenario that is still unproven at scale.