Artificial intelligence stocks stay in the spotlight as Meta’s introduction of Muse shines a light on the computing hardware powering personal AI tools. In response to these developments, Citi boosted its price target for AMD, Hewlett Packard Enterprise revealed fresh AMD-driven servers, and Applied Digital posted revenue growth.
At the same time, John Rogers, co-CEO of Ariel Investments, highlighted entertainment and consumer enterprises as viable options should market enthusiasm pivot away from artificial intelligence.
Meta’s Muse Keeps Chip Stocks in Focus
According to Bloomberg, Wall Street investment managers lean toward semiconductor manufacturers to capture exposure to rivaling AI software. Tema ETFs investment strategy chief Paisley Nardini likened shifts in software dominance to a game of hot potato. Her organization holds shares in Meta and expressed skepticism regarding how long Muse will hold the market’s interest.
The hardware perspective hinges on computational requirements across diverse use cases. Because AI agents execute tasks through multiple stages, they drive up the need for supplementary infrastructure and processors. Citi anticipates that personal assistants will broaden the market for server processors as firms roll out additional services, positioning AMD as one of the key vendors equipped to provide those semiconductors.
On October 6, Atif Malik, an analyst at Citi, lifted his price target for AMD from USD 575 to USD 800. He pointed to Meta as a primary server client for AMD and estimated that the processor industry could expand from USD 29 billion in 2025 to USD 300 billion by the year 2030, based on Citi’s internal projections.
HPE and Applied Digital Add Fresh AI Updates
On October 7, Hewlett Packard Enterprise launched four ProLiant Gen13 server models fueled by sixth-generation AMD EPYC processors. These systems were built by the company specifically for AI agents, executing business computing workloads, data analytics, and trained AI models. This rollout builds upon AMD’s footprint in enterprise servers, complementing the ongoing demand from major cloud service providers.
Additionally, Applied Digital shared its fiscal first-quarter 2027 financial performance on October 7 for the period ending August 31. Total revenue climbed to roughly USD 341.9 million, marking a 322% jump compared to the previous year. The firm posted an adjusted per-share loss of USD 0.01 as it pressed forward with the buildout of its data center operations.
In a separate announcement on October 6, Applied Digital revealed plans for up to one gigawatt of potential power capacity in Finland, representing its inaugural international venture into the Nordic region. Furthermore, the company brought an additional 75 megawatts of AI infrastructure live at Polaris Forge 1 on October 2.
Alphabet Offers Exposure Across Several AI Businesses
Alphabet engages in the artificial intelligence sector via Google DeepMind, Tensor Processing Units, Google Cloud, and various consumer-facing applications. The firm’s activities encompass specialized silicon, model creation, and enterprise services leveraging AI.
Alphabet also deploys artificial intelligence solutions through its established web services. Its market stance differs from pure-play hardware suppliers since the company builds both software and chips while running platforms capable of delivering AI capabilities directly. Progress at the firm continues to be gauged by metrics such as product uptake, capital expenditures, and revenue expansion.
John Rogers Points to Consumer Stocks Outside the AI Trade
Rogers highlighted J.M. Smucker, Sphere Entertainment, Madison Square Garden Entertainment, and OneSpaWorld as his preferred equities. Spanning packaged foods, live entertainment, and wellness offerings on cruise ships, his picks provide exposure to consumer spending independent of AI infrastructure.
He noted that certain consumer brands currently change hands at less than 10 times their projected earnings for the upcoming year. While noting that predicting a shift in market leadership remains difficult, Rogers drew parallels between the current market concentration in AI equities and the environment preceding the dot-com crash of 2000.
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