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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

4 Genius Artificial Intelligence (AI) Stocks to Buy in August

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4 hours ago

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4 Genius Artificial Intelligence (AI) Stocks to Buy in August

Key Points Nvidia's growth rate could reaccelerate with its China export license expected to be restored. Taiwan Semiconductor and ASML are seeing increased chip demand. Alphabet is the cheapest big tech stock by far, and looks like a steal at these levels. 10 stocks we like better than Nvidia › Artificial intelligence (AI) investing is still a prevailing theme in the market, and there are several stocks that look like excellent buys in August. If you're looking to increase your AI exposure, then taking a look at these four is a great idea. At the top of my list for best AI stocks to buy in August are Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and ASML (NASDAQ: ASML). These four have a great combination of growth and value. 1. Nvidia Nvidia has been the top stock of AI investing for a reason: Its graphics processing units (GPUs) have become the nearly universal computing equipment for training and running AI workloads. The demand for Nvidia GPUs is still quite strong, and it could get another growth catalyst in the near future. Back in April, the U.S. government revoked Nvidia's license to export to China the H20 chips that it had specifically designed to meet export restrictions. This was a huge blow to Nvidia's business, with Nvidia losing out on $8 billion in projected revenue from the $45 billion it had expected to generate. Fortunately, Nvidia has reapplied for its export license and says it has assurances from the government that it will be approved. While this won't affect Q2 results (which Nvidia will report in late August), a restart of H20 sales to China should boost growth for the remainder of the year. This will give Nvidia's stock a strong boost, making it a smart stock to buy in August. 2. Taiwan Semiconductor Taiwan Semiconductor is the world's largest chip foundry, and makes chips for companies like Nvidia that lack the capabilities to do it themselves. TSMC is winning business from other foundries, making it the clear leader in this space. It has already reported Q2 results, which delivered impressive 44% year-over-year revenue growth in U.S. dollars. However, that's just the beginning. Management expects that for the five-year period starting in 2025, it will deliver nearly a 20% compound annual growth rate (CAGR) for revenue. With TSMC's stock trading at 25 times forward earnings, it's not that expensive right now. 3. Alphabet Alphabet recently reported impressive earnings, with revenue rising 14% year over year and diluted earnings per share (EPS) rising 22%. Normally, that would cause a big tech company to be assigned a forward earnings multiple in the high 20s to the low 30s, but Alphabet doesn't receive the same respect as other big tech companies. It trades for less than 20 times forward earnings, making it cheaper than the S&P 500 (SNPINDEX: ^GSPC), which trades at 24 times forward earnings. This cheap price tag is assigned to Alphabet's stock because investors are worried about Google Search losing market share to generative AI products. However, that hasn't surfaced. Google has integrated AI search overviews, which bridge the gap between a full generative AI experience and traditional search. Management stated that over 2 billion people have used this and that it has the same monetization as a traditional search. There have been no signs of weakness with Google Search, as revenue rose 12% year over year in the recent quarter. This indicates that Alphabet is cheap for no solid reason, which makes it a great buy for August. 4. ASML ASML is probably the least known company on this list, but it may be the most important. ASML has a technological monopoly on extreme ultraviolet (EUV) lithography, which chip fabricators (like Taiwan Semiconductor) use to lay the microscopic electrical traces on chips. Without ASML's machines, none of the AI tech we enjoy today would be possible. As chip demand rises, so will demand for ASML machines. While management was a bit bearish on its 2026 outlook thanks to tariff concerns, the long-term trend is still positive for ASML, as it's clear that chip demand is increasing. ASML is still slated to deliver strong growth over the next few years, and its fairly cheap 26 times earnings estimates price tag looks like a steal considering its dominant market position. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keithen Drury has positions in ASML, Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 4 Genius Artificial Intelligence (AI) Stocks to Buy in August was originally published by The Motley Fool Sign in to access your portfolio

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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

4 Genius Artificial Intelligence (AI) Stocks to Buy in August

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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

4 Genius Artificial Intelligence (AI) Stocks to Buy in August

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