Wall Street’s Top Trillion-Dollar AI Stock Pick: Buy Now (Not Nvidia)
As of October 3, ten companies on U.S. stock exchanges have reached a market valuation of at least $1 trillion. Among these, Wall Street analysts recommend investing in Meta Platforms as the top pick in the AI sector. Meta’s median target price is set at $880 per share, indicating a 22% upside potential. In comparison, other major companies also involved in artificial intelligence include Microsoft, Amazon, and Broadcom.
Trillion-Dollar Companies and Market Predictions
The following companies currently hold trillion-dollar valuations, ranked by their forecasted upside based on median target prices:
- Meta Platforms (NASDAQ: META): Target price of $880; 22% upside
- Microsoft: Target price of $630; 21% upside
- Amazon: Target price of $265; 19% upside
- Broadcom: Target price of $393; 15% upside
- Nvidia: Target price of $214; 13% upside
- Alphabet: Target price of $245; no change
- Apple: Target price of $250; 3% downside
- Taiwan Semiconductor: Target price of $286; 3% downside
- Tesla: Target price of $354; 18% downside
Meta Platforms’ Investment in Artificial Intelligence
Meta Platforms owns three of the four most widely used social media platforms: Facebook, Instagram, and WhatsApp, collectively attracting 3.4 billion active users daily. This makes it a vital partner for many brands in advertising. The company is leveraging artificial intelligence to enhance user experience. CEO Mark Zuckerberg mentioned that AI significantly aids in presenting content tailored to user interests.
Recent data shows that user engagement increased due to AI enhancements. Users spent 5% more time on Facebook and 6% more on Instagram in the second quarter. Improvements in Meta’s machine learning systems have led to increased ad conversion rates, indicating the company’s effective use of AI in its advertising strategy.
Future Prospects: Superintelligence and Smart Glasses
Meta is actively exploring the realm of superintelligence through its specialized unit, Superintelligence Labs. The company has invested over $100 billion in data center infrastructure in the past two years, aiming to develop advanced AI systems capable of self-improvement.
One avenue for monetization includes smart glasses. Zuckerberg emphasized that personal devices, like smart glasses, will likely become primary computing interfaces. Currently, Meta dominates the smart glasses market with its Ray-Ban Meta Smart Glasses, which accounted for 73% of shipments in early 2025.
The Augmented Reality Market
The augmented reality sector is poised for substantial growth, projected to increase at 38% annually, reaching an estimated $600 billion by 2030. This positions Meta well to capitalize on evolving technology trends and consumer interest.
Valuation and Investment Considerations
Wall Street projects that Meta’s earnings will grow by 17.3% annually over the next three years. This is supported by increasing ad spending in the technology sector. Currently, Meta’s price-to-earnings valuation stands at 25.9 times earnings, giving it a price-to-earnings-to-growth (PEG) ratio of 1.5. This ratio positions Meta competitively among trillion-dollar stocks.
Considering these factors, investors can regard Meta as a sound investment choice, especially for those looking to enter the AI market. The anticipation for future product developments adds to its attractiveness as a long-term investment opportunity.
