Arm Stock Surges As Meta’s Muse Reportedly Fuels CPU Rally — Meta Is Lead Partner On AGI CPU

• Meta is Arm’s lead partner and co-developer on the AGI CPU built for agentic AI infrastructure.
• Meta has said agentic AI is driving higher CPU requirements as its workloads scale.
• CPU requirements are increasing by at least fourfold as application workloads become more agent-driven, according to Arm Holdings.

Arm Holdings Plc (ARM) shares surged about 16% on Monday, making the stock the Nasdaq-100 pack’s top gainer, as Meta Platforms Inc.’s (META) Muse AI agent reportedly sparked renewed enthusiasm for central processing units (CPUs).

The read-through is especially relevant for Arm because Meta is the lead partner and co-developer of its new AGI CPU, which Arm designed for agentic AI infrastructure. However, neither company has said that Meta’s Muse runs on Arm’s AGI CPU.

Why Muse Is Putting CPUs In Focus

Meta launched Muse earlier this month as a personal AI agent that goes beyond answering questions to perform tasks such as sending emails, booking travel, and working on longer-term projects. Each Muse runs inside a dedicated Muse Secure virtual machine (VM) in the cloud.

According to an investing.com report, Muse became the most-downloaded free iPhone app in the U.S. over the past three days, helping fuel Monday’s gains of up to 16% in CPU-linked names including Arm, Intel (INTC) and AMD.

AI Boosting CPU Needs

Meta itself has said agentic AI is increasing CPU requirements. In April, the company said that as its agentic AI work advances, “compute requirements are evolving to demand more CPU.” 

Meta has also said its data centers are “outgrowing the abilities of traditional CPUs” as AI workloads expand, helping explain its partnerships with Arm and AWS on new CPU infrastructure.

Arm Is Betting On Agentic AI CPU Demand

Arm introduced the AGI CPU in March, its first Arm-designed data-center CPU, specifically targeting agentic AI workloads. Meta is working with Arm across multiple chip generations, with the chips intended to operate alongside Meta’s own MTIA accelerators.

Arm subsequently said customer demand for AGI CPU had exceeded $2 billion across fiscal 2027 and 2028, more than double what it disclosed at launch. The company also said CPU requirements are rising by at least four times as application workloads become increasingly agent-driven.

Retail Sentiment Around ARM Stock

Retail investor sentiment surrounding ARM stock remained ‘bullish’ on Stocktwits amid high message volume.

So far this year, ARM Holdings shares have risen more than 178%. In comparison, the VanEck Semiconductor ETF (SMH), which holds the stock, has risen nearly 59% over the same period.

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