Global artificial intelligence stocks surged on Tuesday as early signs of success from Meta Platforms Inc.'s newly launched personal AI agent rekindled optimism around chip demand, providing relief to a sector that had recently faced turbulence amid calls to slow AI development.
South Korean chipmakers Samsung Electronics and SK Hynix both saw their shares climb approximately 3%, helping lift the benchmark Kospi index by nearly 2%. Overnight, the Philadelphia Semiconductor Index closed up 4.3%, marking its largest single-day gain since August 4, while Meta shares soared 11%.
The rally was fueled by Meta's Muse AI agent, which quickly climbed to the top of Apple Inc.'s free app charts following its launch earlier this month. Falling oil prices, driven by hopes for diplomatic progress on the Iran conflict, further boosted risk appetite across markets.
This upward momentum offered a respite for the red-hot AI trade, which had come under pressure from elevated valuations and recent warnings from tech industry leaders about existential threats posed by advanced AI models. The early popularity of Muse provided fresh evidence that AI demand remains robust, easing some of those concerns.
"The strong rebound in tech trading shows the AI boom never really faded," said Kyle Rodda, senior analyst at Capital.com.
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