AMD Surges on Meta's Muse AI Agent While Nvidia Lags on CPU Doubts

Advanced Micro Devices (AMD) shares climbed 10% on Monday and added 1.34% on Tuesday to close at $623.77, as investors bet Meta's (META) AI agent Muse will drive demand for central processing units. Nvidia (NVDA) rose just 0.66% to $228.87 on Tuesday, following a 2.3% gain in the prior session. The divergence underscores investor skepticism that Nvidia's push into standalone CPUs can meaningfully lift a company valued at roughly $5.5 trillion. Nvidia CEO Jensen Huang said in the company's first-quarter earnings call that CPU chips could generate $20 billion in revenue this year — modest against an estimated $409 billion in total annual revenue. AMD's forecast price-to-earnings ratio stands at 45 times versus Nvidia's 17 times, per FactSet. AMD is up 179% year to date; Nvidia has gained 21%. Nvidia holds other inference-market cards, including a $20 billion licensing deal for Groq technology and the August launch of the Groq 3 LPX inference accelerator.