The rapid rise of Muse has been a big story for investors over the past month -- and it's not just the personal AI agent's developer Meta Platforms that will benefit.

Advanced Micro Devices also looks like a winner because of how reliant Meta is on the chip maker's central processing units (CPUs), Citi said in a research note published on Tuesday.

Analyst Atif Malik maintained his Buy rating for AMD and raised his target price to $800 from $575. The new target price implies shares can rise 27% from their Monday closing price.

Malik is feeling more bullish because he expects Muse and other AI agents to be massive drivers of chip demand. Unlike traditional chatbots, which are idle between user interactions, agents operate continuously -- so they require a lot more compute, memory, and networking to run.

"Fundamentally, we view agentic AI as a potential orders-of-magnitude driver of compute demand relative to traditional chatbots," Malik said. He expects the CPU industry to grow 60% a year on average until the end of the decade, becoming a $300 billion market.

AMD is ramping up chip production to meet that surge in demand. The company will "substantially increase" supply in 2027, CEO Lisa Su told reporters in Taiwan on Tuesday, per multiple reports.

The stock rose 1.9% to $643.88 ahead of the opening bell. It has rallied 195% so far this year, topping a $1 trillion valuation for the first time last month following Muse's rapid rise in popularity.