Global AI stocks rallied as early signs of success for Meta Platforms Inc.'s new personal agent revived optimism over chip demand, bolstering the sector after a recent rough patch driven by calls for slower AI development.
Shares of South Korean chipmakers Samsung Electronics Co. and SK Hynix Inc. were up about 3.5% early in the session, while Taiwan's Taiex advanced 1.8% to a record. Overnight, the Philadelphia Stock Exchange Semiconductor Index closed up 4.3%, the biggest one-day rally since Aug. 4, while Meta shares jumped 11%.
The rally followed Meta's Muse AI Agent climbing to the top of rankings on Apple Inc.'s free applications list after its launch earlier this month. Lower oil prices, amid hopes for diplomatic progress in the Iran war, further supported risk appetite.
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The moves are also offering reprieve for the hot AI trade, which has come under pressure from rich valuations and, more recently, concerns among tech leaders over the existential threat posed by advanced models. Muse's early traction is easing some of those fears by offering fresh evidence that AI demand remains robust.
"The sharp rally in the tech trade shows that the AI trade never really went away," said Kyle Rodda, a senior analyst at Capital.com. A meeting between President Donald Trump and Chinese leader Xi Jinping later this week may also provide support, he added.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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