Meta’s new Muse AI assistant has sparked a surge in trading activity, with investors betting on its artificial intelligence push. This interest has extended beyond Meta’s stock, influencing chip stocks and the broader market as the Nasdaq reached a new intraday high on Tuesday.
Trading in Meta options surged to 4.5 times the 30-day average, with nearly $3.9 billion in total premium changing hands, according to Cboe LiveVol and SpotGamma data. Most trades were bullish or neutral, with more than $1.3 billion in call premium initiated by buyers.
The most actively traded contracts included zero-day-to-expiry calls with strike prices between $720 and $745, which finished Monday in the money. Traders also showed interest in $775 and $800 calls expiring in mid-October.
SpotGamma founder Brent Kochuba attributed the surge in options trading to the “AI hype around their Muse”. Muse’s early download figures have impressed Wall Street analysts, with the app recording 2.8 million downloads in its first 12 days.
Meta’s shares have responded positively, gaining more than 20% since Muse’s launch, adding over $200 billion to its market capitalization. The assistant’s capabilities, including sending emails, booking travel, and completing transactions, have been well-received.
Analysts from JPMorgan and BofA Global Research praised Muse’s distribution, free tier, and ability to complete multi-step tasks. Of the 64 brokerages covering Meta, 57 have a “buy” rating or higher.
Meta’s AI efforts go beyond Muse. It has increased spending on AI infrastructure, expanding data centers and computing capacity. The company also hired Scale AI co-founder Alexandr Wang as its chief AI officer.
As Meta prepares for its annual Connect conference, investors eagerly await insights into its AI and wearable products. With CEO Mark Zuckerberg delivering the opening keynote, the event is expected to shed more light on Meta’s AI strategy.
Meta’s commitment to AI is further demonstrated by its Petal project, a 4,300-mile subsea cable connecting the U.S. and France. Scheduled for 2029, Petal will carry one petabit of data per second across the Atlantic.