<div id="readability-page-1">The U.S. is home to seven companies worth at least $1 trillion, but only four are currently members of the $2 trillion club: <ul> <li>Apple: $3.2 trillion</li> <li>Microsoft: $3.2 trillion</li> <li>Nvidia: $2.8 trillion</li> <li>Amazon: $2 trillion</li> </ul> I think Meta Platforms (META 4.30%) has the potential to join them within the next couple of years. It's the parent company of social networks Facebook, Instagram, Messenger, and WhatsApp, but its leadership position in the artificial intelligence (AI) race could be its ticket to a $2 trillion valuation. The company is worth $1.47 trillion as of this writing, so investors who buy its stock today could earn a return of 36% if it does achieve the $2 trillion milestone. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTY4MjkvdHdvLXBlb3BsZS1sYXVnaGluZy13aGlsZS13YXRjaGluZy1hLXZpZGVvLW9uLWEtc21hcnRwaG9uZS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTY4MjkvdHdvLXBlb3BsZS1sYXVnaGluZy13aGlsZS13YXRjaGluZy1hLXZpZGVvLW9uLWEtc21hcnRwaG9uZS5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>AI is at the center of Meta's future</h2> Over 3.4 billion people use at least one of Meta's social media apps every day. The company generates revenue by selling ad slots to businesses, so the longer each user spends online, the more ads they see, and the more money Meta makes. But increasing engagement requires constant innovation, and Meta has unlocked a secret weapon in AI. The company uses an AI algorithm to constantly learn what content each user likes to see, so it can show them more of it to keep them online for longer periods of time. During his conference call with investors for the first quarter of 2025, CEO Mark Zuckerberg said AI-powered recommendations resulted in a 7% increase in the amount of time users were spending on Facebook over the last six months, a 6% increase on Instagram, and a whopping 35% increase on Threads, which is the company's new competitor to X (formerly Twitter). But Meta is also using AI to create entirely new products. It launched the Meta AI virtual assistant in 2024, which is accessible through all of its existing social apps. It can answer complex questions, generate images, and even join group chats to suggest fun activities or settle debates between friends. It had almost 1 billion monthly active users at the end of the first quarter, which is remarkable for a product that is barely a year old. Plus, Meta is transforming the advertising experience for businesses. Through the power of AI, Zuckerberg says businesses will soon be able to tell Meta their goals (like selling a product or increasing brand awareness) and their budget, and its ad platform will autonomously take care of the rest. He thinks AI will do a better job than most businesses at generating ad creatives (writing the text and generating images) and identifying the best target audience. This is a huge development for businesses that don't have in-house marketing teams, so it could direct more ad dollars Meta's way. In fact, Zuckerberg said 30% more businesses used AI creative tools in the first quarter compared to the previous period just three months earlier. <h2>Meta is investing a truckload of money in its AI strategy</h2> Meta generated $42.3 billion in total revenue during the first quarter of 2025, which was a 16% increase from the year-ago period. Net income (profit) came in at $16.6 billion, which was a much faster increase of 35%, as management continues to keep operating expenses in check to boost the bottom line. However, Meta's free cash flow -- which is a non-GAAP (adjusted) measure of profitability -- actually shrank by 17% due to a sharp increase in capital expenditures (capex). Simply put, developing AI isn't cheap. Meta spent $13.6 billion on new data center infrastructure and chips during the first quarter, and it raised its capex forecast for the whole of 2025. It originally expected to invest between $60 billion and $65 billion on its AI ambitions this year, but that range now stands at $64 billion to $72 billion. That spending will drive a further improvement in Meta's Llama family of large language models. The recently released Llama 4 models are among the most intelligent in the industry, and they sit at the foundation of products like Meta AI. Investors will want a payoff for all of that spending, because it weighs on the company's earnings over time. Metrics like increased screen time on Facebook and Instagram, in addition to soaring usership of new products like Meta AI could translate into significant revenue and earnings growth in the long run, which is exactly what shareholders want to see. <h2>Meta's (mathematical) path to the $2 trillion club</h2> Based on Meta's trailing-12-month earnings per share (EPS) of $25.64, its stock trades at a price-to-earnings (P/E) ratio of 22.7. That is a steep discount to each of the four current members of the $2 trillion club: <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/84b3402061de704e6564eb284c5117ac.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="490" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/84b3402061de704e6564eb284c5117ac.png"/> PE Ratio data by YCharts Meta stock would have to soar by 58% just for its P/E ratio to trade in line with the average P/E of those other four companies (which is 35.9). That alone would see its market capitalization exceed $2.3 trillion. However, let's assume Meta's P/E ratio settles at around 29, which is the midpoint between 22.7 and 35.9 -- it isn't out of the question since it consistently traded at that level over the past year. That would drive the company's market cap to $1.87 trillion, meaning it would only have to grow its current EPS by around 7% to reach the $2 trillion milestone. According to Wall Street's consensus estimate (provided by Yahoo! Finance), Meta could grow its EPS by nearly 11% in 2026, so a $2 trillion market cap could be on the table in the next 12 to 18 months. But no matter the potential timeline, Meta is a very likely candidate to join Nvidia, Microsoft, Amazon, and Apple eventually. We are only seeing the very early benefits of the company's AI initiatives right now, and they are shaping up to become its biggest growth driver over the long term. </div>

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1 Unstoppable Stock Set to Join Nvidia, Microsoft, Amazon, and Apple in the $2 Trillion Club