The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street

Meta Platforms is making substantial investments, estimated at $67 billion in capital expenditures this year primarily for AI data centers, positioning itself as a major beneficiary of generative AI advancements across its ad business and AR/VR initiatives. Wall Street analysts are bullish, with a median price target of $880, representing a 22% upside, the highest among trillion-dollar market cap companies. The company recently reported strong financial results, including 22% revenue growth and 38% EPS growth, and despite anticipated increases in operating expenses from depreciation and AI talent, strong revenue growth is expected to sustain double-digit EPS growth by 2026-2027, making its current valuation of 25x 2026 earnings attractive.

Analysis

Meta Platforms is making substantial strategic investments in artificial intelligence, allocating approximately $67 billion in capital expenditures this year primarily towards AI data centers. This aggressive AI push is a key factor behind Wall Street analysts' bullish sentiment, with a median price target of $880 per share, representing a 22% upside and positioning Meta as the most favored trillion-dollar company among peers.

The company's recent financial performance underscores its strength, reporting 22% revenue growth, 36% net income growth, and 38% EPS growth last quarter. This robust free cash flow generation supports both significant AI investments and share buybacks, indicating effective capital allocation despite heavy spending. Generative AI is anticipated to significantly enhance Meta's ad business through optimized campaign management and expand the utility of its AR/VR platforms.

While Meta faces potential headwinds from rising operating expenses next year due to increased depreciation from AI infrastructure and high AI talent acquisition costs, strong revenue growth is expected to mitigate these impacts. Analysts project EPS growth to reaccelerate to double-digits in 2026 and 2027. The stock's current valuation at 25 times analysts' 2026 earnings expectations appears attractive, reflecting its strong positioning in the evolving AI landscape.

Key Decisions for Investors

• Investors should evaluate Meta Platforms' long-term growth potential driven by its substantial AI investments and the projected reacceleration of EPS growth in 2026-2027.
• Monitor the company's capital expenditure efficiency and the impact of increasing depreciation and AI talent costs on operating margins in the upcoming fiscal year.
• Consider the current valuation of 25x 2026 earnings as a potentially attractive entry point, given the company's strategic positioning in generative AI and strong financial performance.