Wall Street says chipmakers, not AI apps, remain the smart AI bet

Meta’s Muse might be the AI agent everyone is downloading right now. Wall Street’s advice is to buy the companies making the chips instead. Analysts cited by Bloomberg say semiconductor makers remain the most dependable way for investors to get exposure to artificial intelligence, even with Muse pulling ahead in the consumer race. The numbers behind the chip trade The Philadelphia Stock Exchange Semiconductor Index has climbed 84% year-to-date as of early October 2026. The rally has not been a one-company show. Micron Technology, Marvell Technology, Intel and Advanced Micro Devices have all helped push the index higher. AMD delivered the headline moment. The chipmaker crossed a $1 trillion market capitalization following the launch of Muse, joining a very exclusive club of companies valued in the trillions. Then there is Nvidia, the stock that has become shorthand for the entire AI trade. On October 6, 2026, Morgan Stanley reinstated Nvidia as its top semiconductor pick, pointing to strong demand from data centers. Muse wins the spotlight, chips win the sale Meta Platforms unveiled Muse at its Meta Connect event on September 23, 2026. The AI agent racked up millions of downloads wi...