The global AI trade is experiencing a significant resurgence, as evidenced by the Nasdaq-100 Index hitting an all-time high, surpassing its previous record from June. This renewed interest in technology stocks is attributed to a combination of factors: a retreat in oil prices below $100 a barrel, which has eased inflationary pressures; the successful launch of Meta Platforms' new agentic AI tool, Muse; and investor optimism surrounding the upcoming China-US leadership summit.
Meta's Muse agent has played a particularly crucial role in this shift, reinforcing demand across the AI supply chains. The stock of Meta itself has seen a substantial increase, rising 19% since Muse's launch on September 8th, with an 11% jump on a single Monday after Muse ranked No. 1 on Apple's App Store over the weekend. This success has ignited discussions about new AI use cases and potential market winners in an era of agentic growth, though investors are keenly watching whether Meta can convert its large user base and app engagement into revenue.
In Asia, chip-heavy indices such as China's Star Market 50 Index and South Korea's Kospi gauge, which includes major memory chipmakers, have also been rebounding since July sell-offs. This marks a reversal in negative sentiment towards AI stocks, which had previously been impacted by inflationary fears and calls from some U.S. tech companies to slow AI development due to safety concerns. However, the current environment, characterized by easing inflation and strong consumer adoption of AI tools like Muse, has brightened the outlook for the sector. Concerns about the broader economic implications of the AI boom persist, with nearly $33 trillion in market value added to the S&P 500 Index since the AI boom began in late 2022, prompting ongoing debates about the technology's societal impact and potential risks.
