The Ultimate Trillion-Dollar Stock Pick Wall Street Is Betting On Now

Wall Street's trillion-dollar darling emerges as institutional money floods in—cutting through market noise with sheer momentum.

The Numbers Don't Lie

Crossing the trillion-dollar threshold isn't just a milestone—it's a market statement. This stock's trajectory bypasses traditional growth patterns, fueled by institutional conviction that's rewriting valuation playbooks.

Why This One Stands Apart

While analysts chase the next big thing, this established giant keeps delivering—proving sometimes the safest bet is the one already printing money. Another quarter, another earnings beat that makes short-sellers question their life choices.

The Institutional Stampede

Hedge funds and pension funds aren't just dipping toes—they're diving headfirst. The buying pressure creates a self-fulfilling prophecy that would make even efficient market theorists cringe.

Because nothing says 'smart investment' like following the herd that manages other people's money for a living.

Meta Platforms is spending big and winning big with AI

Meta Platforms is one of the biggest spenders on artificial intelligence in the world. Management expects to spend roughly $67 billion on capital expenditures this year, most of that going toward building and outfitting AI data centers. While other hyperscalers are spending even more, Meta doesn't rent out any of its compute like the three big cloud computing giants. All that spend goes toward training and running its own AI.

There's good reason for Meta to spend so much on AI: It could be one of the biggest beneficiaries of advances in generative AI in both the NEAR and long term.

In the near term, Meta's machine learning algorithms are essential for optimizing content feeds in its social media apps. The algorithms are responsible for both what content users see, what ads they see, and when they see it. The end result is a well-designed machine for maximizing time on its apps and ad revenue per minute spent on those apps.

With the advancements of generative AI, Meta can supercharge its ad business. CEO Mark Zuckerberg envisions generative AI getting to the point where an AI agent can practically manage advertising campaigns for a business, saying, "Our goal is to make it so that any business can basically tell us what objective they're trying to achieve ... and how much they're willing to pay for each result, and then we just do the rest."

Such a product WOULD make it easier for small businesses to advertise on Facebook and Instagram and put more of their budgets toward winning customers instead of developing new ad campaigns. Putting AI in charge of ad creatives could also make them more effective, as Meta can tailor-make ads for each user in order to maximize conversions.

In the long run, generative AI could be instrumental in expanding the use cases of augmented reality headsets. An AI-based user interface would not only allow users to interact with AI, but AI to interact with the user's environment. Meta is arguably the current leader in augmented reality and VIRTUAL reality technology, but AI could unlock a broader user base for its platform.

Meta's stock valuation is still attractive

Meta has seen excellent financial results even as it spends heavily on AI infrastructure. Revenue grew 22% last quarter, while operating margin expanded, resulting in 36% growth in net income. Meta also generates more than enough free cash FLOW to both invest in AI and buy back its shares, which means earnings per share grew somewhat faster, at 38%.

But some may worry all that spending will catch up to Meta in the near future. As capital expenditures grow, so do deferred expenses (i.e., depreciation). Those will hit Meta's income statement starting next year.

Meta estimates the useful life of its non-AI and AI servers to average 5.5 years. But if Meta has to replace servers more quickly than that, it could cause a significant spike in expenses down the line as it adjusts its calculation and buys more AI chips.

Meta is also reportedly paying hundreds of millions for top AI talent. Combined with the rising depreciation expenses, management is forecasting a sharp uptick in operating expenses next year. Still, strong revenue growth could more than offset it and support excellent earnings-per-share growth.

Right now, analysts expect EPS growth to slow significantly in the back half of the year. Even so, they expect earnings to reaccelerate to double-digits in 2026 and 2027. Meanwhile, the stock trades for just 25 times analysts' expectations for 2026 earnings. That's a great price for a company that's well positioned to benefit from the advancements in AI and is spending in an effort to control its destiny in that regard. It's no wonder Wall Street analysts expect the stock to keep climbing over the next year.