AI trade roars back as Meta’s personal agent fuels optimism

AI stocks experienced a significant resurgence as early indications of success for Meta Platforms Inc.'s personal AI agent, Muse, reignited optimism in the semiconductor sector. This rally came after a turbulent period marked by calls for more cautious AI development. Asian markets, particularly those in Taiwan, saw substantial gains, with the Taiex up by 1.8 percent to a record high.

Meta shares surged 11 percent following Muse's impressive debut, climbing to the top of Apple's free-app rankings shortly after its launch. This success is fueling renewed confidence in the AI sector, with experts suggesting that widespread adoption of Muse could significantly boost demand across the AI infrastructure supply chain, benefiting chipmakers.

Lower oil prices, driven by hopes for diplomatic progress in the Iran conflict, also contributed to the overall risk appetite. Additionally, geopolitical developments and the upcoming meeting between President Donald Trump and Chinese leader Xi Jinping are expected to further support market sentiment. In Asia, Taiwanese AI supply-chain companies saw notable gains, including MediaTek, Unimicron Technology Corp., and Nan Ya Printed Circuit Board Corp. Memory stocks also rallied in onshore China, lifting the Star 50 Index by more than 2 percent.

Tencent Holdings Ltd. experienced a rise as investors anticipated potential AI-driven opportunities on its WeChat platform. However, some retail investors in South Korea opted to take profits, causing the Kospi Index to trim its earlier advance to 1.6 percent, signaling a potential choppy recovery ahead. The surge in Taiwan's market underscores growing confidence that hyperscalers will continue scaling their proprietary chips as AI adoption accelerates, thereby accelerating demand for custom AI chips and supporting Taiwan's ASIC ecosystem.