AMD stock reaches fresh high as Meta Muse fuels CPU demand hopes
AMD rose almost 3% to $649.42 as investors bet AI agents could broaden server-CPU demand, though Meta says its systems are CPU-agnostic.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
AMD stock Meta Muse interest pushed Advanced Micro Devices nearly 3% higher to a fresh high of $649.42 in Tuesday trading, CNBC reported. The move reflects investor expectations that AI agents such as Meta's Muse may require more server CPUs alongside graphics processors, though it does not show that Muse has created AMD sales.
Meta introduced Muse in early September, and the app reached the top of Apple's App Store in less than two weeks, according to CNBC. OpenAI subsequently released its own agent, Dots, as companies pursue software that can plan and carry out tasks over longer periods rather than respond to a single prompt.
For investors, the key issue is whether adoption of these products turns into orders for the chips that run them. That link remains unproven. Meta said its hardware strategy is diverse and largely CPU-agnostic, meaning it aims to use available processor capacity rather than rely on one supplier.
Why could AI agents increase CPU demand?
Graphics processing units, or GPUs, are specialized chips widely used to process AI models. Central processing units, or CPUs, handle a broader range of computing instructions. Analysts and industry executives told CNBC that an agent operating for hours in the background needs both: GPUs to run model inference, the process of generating an AI model's output, and CPUs to manage the workflows the agent carries out.
Daniel Newman, chief executive of Futurum Group, told CNBC that GPUs handle the model processing while CPUs perform the workflows. Meta and OpenAI use virtual machines, which split a physical server into multiple software-based computers for different users, CNBC reported. That setup is part of the case for additional CPU capacity if agent usage grows.
Ryan Shrout, president of hardware consultancy Signal65, said wider use of agents could shift some workload from GPUs to CPUs. That is an industry view about a potential change in computing demand, rather than a measure of current purchases.
AMD has data-center growth, but agents are not a proven driver
AMD's data-center revenue more than doubled to $6.7 billion in the quarter ended in June, representing almost 60% of its total sales, CNBC reported. The figures show that the unit has become central to AMD's business, but the available reporting does not attribute that growth specifically to AI agents or CPU demand.
Dan McNamara, AMD's senior vice president and general manager of compute and enterprise AI, told CNBC that discussions around agentic use have changed over the prior eight to 10 months and that he expects CPU sales to increase. That is the company's outlook.
AMD is also not alone in pursuing the opportunity. CNBC reported that Intel and AMD CPUs are used across many large cloud operators, while those companies are also developing their own chips, often based on Arm technology. Nvidia introduced its Vera CPU earlier this year, and OpenAI uses multiple CPU suppliers, according to CNBC.
Wall Street has echoed the optimistic view, with Investopedia reporting that Citi raised its AMD price target to $800 from $575, citing its belief that agents such as Muse could lift demand for AMD chips. A price target is an analyst opinion, not evidence that agent-related chip demand will materialize.
This story draws on original reporting from CNBC.
