Meta Soars 26% as Muse AI Agent Steals Spotlight from Nvidia
The 'Magnificent Seven' stocks had a lackluster month of September. But one player stood out, posting a double-digit gain and making investors take notice.
Nvidia, which has been a top performer in recent years due to its dominance in the AI chip market, added 3.4% during the month. However, Meta Platforms (NASDAQ:META) was the clear winner, soaring 26% in September.
META's success can be attributed to its recent launch of Muse, a personal AI agent powered by its Spark family of large language models. The app had 730,000 downloads in five days and surpassed OpenAI's ChatGPT to become the No. 1 iOS free app in the U.S.
The company's focus on AI has impressed investors, and they see the Muse launch as a major step towards generating significant revenue from its AI investments. While META trades at 23x forward earnings estimates, making it more expensive than before, its well-established business and progress in AI make it a stock to consider for long-term investment.