Meta's Muse reignites AI disruption fears. Traders are targeting this brokerage stock as next casualty

Meta's latest AI product, Muse, is causing a stir in the market. According to Business Insider, Muse has become a hit app, overtaking ChatGPT as the top free AI app. Meta's CEO, Mark Zuckerberg, had previously mentioned that the company's goal was to create an AI agent that would "pass his mother test", meaning it had to be polished, easy to use, and effective.

The success of Muse is having a ripple effect on the market, with KeyBanc raising its price target on Meta to $900 from $780, citing the momentum of Muse as a key factor. The stock currently trades at $736.60. Meanwhile, the global AI trade is staging a comeback, with the Nasdaq-100 Index hitting an all-time high and Asian markets such as China's Star Market 50 Index and South Korea's Kospi gauge bouncing back.

According to Stephen Innes, a managing partner at SPI Asset Management, the regaining of market sentiment is due to a combination of factors, including falling oil prices, Meta's Muse agent, and anticipation surrounding the China-US leadership summit. He notes that Meta's agent story pushes AI beyond GPUs towards a wider compute trade built around inference, CPUs, cloud, and digital labour, as reported by SCMP Business and South China Morning Post.

Brief written by urgent.news from CNBC, Investing.com, Business Insider, SCMP Business, South China Morning Post — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.