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The company’s artificial intelligence efforts are the key points to achieve the goal. Indeed Nvidia is very close to reaching a $1 trillion market cap. In contrast, this company is also gaining market shares very rapidly and is not far behind Nvidia.
Currently, four stocks that trade on the U.S. exchanges are on the edge of $1 trillion on the market cap. All companies have a well-known place in artificial intelligence. On the other hand, the new AI leader is knocking at the door. The company hit Nvidia’s stock exchange and it currently stands at $980 billion.
To get Nvidia over the 12-figure mark, not much will be required. And there’s another contender who might take its place. In addition to Nvidia, this is the next AI stock most likely to join the $1 trillion club.
Aiming To Reclaim Its Membership
In 2021, Meta platforms’ market cap topped $1 trillion. Though, it didn’t work for so long. Whereas, at the end of 2022, the company famous as Facebook had lost nearly 75% of its peak value.
Moreover, the emphasis on the Metaverse by Meta turned off investors. More significantly, they lost interest in it due to its declining profits. Some people appeared prepared to consign the business to tech history’s heap.
But later on, Meta’s valuation started looking very attractive for investors. However, the company’s social media platform was used by nearly three billion people across the world every day.
By exceeding earnings estimates for the first time in a long time with its 2023 first-quarter results. Meta gave investors more to think about. The struggling stock recieved new life from all of this.
Moroever, Meta’s share price has skyrocketed to an edge of 150% so far in 2023, bringing its market cap around $680 billion.
Meta’s Way To $1 Trillion
Here the question arises, how Meta has taken a big market cap of $1 trillion? The answers may vary, but the most simplest answer is to increase its earnings and to convince investors that it’s future earnings potential is greater than previously thought.
Meta is going at a very steady speed and trying to grow its earnings significantly. Undoubtedly, Meta’s significant growth in AI is taking the company to the next level. Meta’s AI efforts are dramatically improving monetization on Facebook and Instagram Reels.
The effort is indeed playing a significant role in attracting investors towards the company. The company is constantly working to incorporate generative AI chat into WhatsApp and Messenger and is developing AI tools to help create videos for posts and ads on social media platform.
Though, the efforts will definitely help the company to achieve its Metaverse vision as well.
According to Mark Zuckerberg, “the company is not scaling back it’s plans for the Metaverse. I think AI could be used to assist creating avatars and virtual worlds”.
Two Potential Obstacles
Still, Meta has to deal with two major obstacles to reach $1 trillion market cap. Prior to Meta, Tesla (TSLA 4.06%) might become a member. One of the best AI stocks on the market, including Ark invest CEO Kathie Wood,is the maker of electric vehicles.
Additionally, Tesla’s market cap of about $780 billion is more comparable to the $1 trillion threshold than Meta’s. On the other hand,Meta could be outplayed by $1 trillion club leader Apple. Apple’s vision is where investors believe technology is headed ,they could loose interest in Meta’s augmented reality (AR) and virtual reality (VR) dreams.
Is It Good To Invest $1,000 In Meta Platforms Right Now?
According to many advisors, analyst team just revelaed that they believe that Meta is progressing so well but still Meta platform was not one of them.
Read more:
The Metaverse: A Hyped Concept That Finally Dies
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