Meta's New AI Agent 'Muse' Divides Market, Boosting Chipmakers and Hitting Financials

The launch of Meta's new personal AI assistant, Muse, has sent ripples across Wall Street, creating a stark divide between corporate winners and losers. The app, which allows users to delegate tasks like shopping and travel booking, has seen rapid consumer adoption, sparking investor concerns about its potential to disrupt established industries.

According to market intelligence firm Sensor Tower, Muse recorded 2.8 million downloads within two weeks of its launch and overtook ChatGPT as the top free app in the U.S. and Canada. This immediate success has led to fears that the AI agent could function as a powerful comparison-shopping tool, eroding brand loyalty and driving customers to lower-cost alternatives.

Sectors Under Pressure

Several sectors have faced significant selling pressure this week as investors reassess their business models in light of Muse's capabilities. The disruption fears have been most acute in:

• Financials: Major banks like JPMorgan and Wells Fargo have seen their shares fall by over 3% this week, while brokerage Charles Schwab was down nearly 5%. Insurers such as Marsh and Arthur J. Gallagher also declined 2.4% and 4.6%, respectively.
• Travel and Subscriptions: Booking companies TripAdvisor and Booking Holdings have lost over 6%. Other subscription-reliant firms, including Planet Fitness and the New York Times, have dropped 17% and 10%, respectively.
• Gig Economy: Ride-hailing and delivery platforms like Uber, Lyft, and DoorDash also registered declines.

However, some analysts believe the sell-off may be an overreaction. "If you’re going to trust the management of your finances to something that Muse found for you, then you were likely not a big payer to anyone in that industry to begin with," said Art Hogan, chief market strategist for B. Riley Wealth, suggesting the concerns are "far-fetched."

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Meta and AI Infrastructure Surge

In contrast, Meta's shares have soared nearly 13% this week, positioning the company for its fifth consecutive week of gains. The rally is supported by optimistic revenue forecasts, with Truist Securities estimating Muse could generate at least $28.5 billion in additional annual revenue by fiscal 2030.

Partners integrating with the new AI agent have also benefited. Shares of Canadian e-commerce platform Shopify jumped 11.4% this week after announcing it would use Muse to process checkouts. PayPal also saw a marginal gain after confirming a similar partnership.

The widespread adoption of AI agents like Muse is expected to accelerate the buildout of AI infrastructure. This has boosted semiconductor stocks, with the Philadelphia Semiconductor Index gaining 7% since the app's launch. Chipmakers Nvidia and Advanced Micro Devices were cited as top gainers in the index.