1 Unstoppable Stock to Buy Before It Joins Nvidia, Alphabet, Apple, and Microsoft in the $3 Trillion Club

The U.S. is home to 11 publicly listed companies with market capitalizations of $1 trillion or more, but only Nvidia, Alphabet, Apple, and Microsoft are currently worth more than $3 trillion.

I think Meta Platforms (NASDAQ: META) could join that ultra-exclusive club within the next few years as artificial intelligence (AI) transforms its social media platforms and unlocks new revenue streams. The company is currently worth $1.4 trillion as I write this, so investors who buy its stock today could more than double their money if its market cap does rise to $3 trillion.

Image source: Getty Images.

AI is transforming Meta's family of apps

During the second quarter of 2026 (ended June 30), 3.6 billion people were using at least one of Meta's Facebook, Instagram, Threads, and WhatsApp social media platforms every day. Since there are only 8.3 billion people on Earth and the company's apps are blocked in populous countries like China, it's getting harder to find new users.

As a result, Meta is trying to boost engagement instead. If each existing user spends more time online, they will see more ads, and the company will make more money. To achieve this, Meta is embedding AI into its recommendation algorithms to show users more of the content they enjoy viewing on Facebook and Instagram. These algorithms will only get more accurate as AI learns and evolves over time.

Meta also offers a growing portfolio of AI-powered creative tools to help businesses craft the most engaging ads. When ads convert more prospects into paying customers, Meta can charge more per slot, so this is another way to generate additional revenue without acquiring new users. The company is also experimenting with AI business agents on WhatsApp and Instagram, which can handle incoming customer inquiries at all hours of the day. This could be another tool that drives more sales for Meta's business customers.

But Meta CEO Mark Zuckerberg thinks AI agents will eventually play a central role in the overall social media experience. The company is developing personal agents that will help users improve every aspect of their lives, from their health to their finances. This might be an opportunity to take traffic from other platforms, such as Google, when users want advice on a certain topic, which could significantly boost engagement.

Meta's revenue is growing rapidly, but AI spending is impacting its earnings

Meta generated $60.8 billion in revenue during the second quarter, a 28% increase from the year-ago period. While that was a great result, Wall Street was more focused on the company's bottom line.

Meta spent $72 billion on building AI data center infrastructure last year, but that figure could double to $145 billion in 2026 based on management's latest guidance. The company can't deduct these costs up front because data centers have a useful life of several years, so it depreciates the infrastructure over time instead. That means capital expenditures in 2025 could impact Meta's earnings power in 2026, 2027, 2028, and even beyond.

The effects are starting to show up. Meta's total operating expenses jumped by 55% to $42 billion during the second quarter, driven primarily by higher depreciation and data center operating costs. This caused the company's earnings to decline by 13% to $6.18 per share.

This could become a major concern on Wall Street if Meta's data center spending doesn't produce returns. The prospect of soaring capital expenditures and lower earnings will affect the price investors are willing to pay for the stock, which is a risk to keep in mind.

Meta has a mathematical path to the $3 trillion club

Despite Meta's rising costs, it has still generated earnings of $26.55 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of 20.9. The Nasdaq-100 index has a P/E ratio of 32.6, so Meta looks undervalued compared to a group of its big-tech peers.

Moreover, Wall Street still believes Meta will grow its earnings to $34.10 per share in 2027, placing its stock at a forward P/E ratio of just 15.75.

META PE Ratio data by YCharts

That suggests Meta stock would have to soar 107% by the end of next year just to match the P/E ratio of the Nasdaq-100, which is possible given its P/E was over 30 for a big portion of the last decade. That alone would give the company a market capitalization of $2.9 trillion, so even modest earnings growth in 2028 would be enough to justify admission into the $3 trillion club.

There is no guarantee Meta's P/E will rise to 32.6, but I think there are two ways it could get there. First, the company could show an incredible return on investment on its AI spending in the form of higher in-app engagement and soaring advertising revenue. Second, it could pull back on its AI spending to prop up its earnings. It chose the latter option in 2022 when shareholders felt Mark Zuckerberg was burning too much money on the metaverse, which eventually resulted in a P/E ratio of over 35.

But even if Meta doesn't join the $3 trillion club by 2028, I think it's one of the most likely candidates to get there in the long run.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.