This AI Giant Aims to Reach $9 Trillion in Market Cap. Is the Stock a Buy?

Last year, artificial intelligence (AI) giant Nvidia reached a massive milestone. The company surpassed tech stalwarts Microsoft and Apple to become the world’s biggest company by market value. Nvidia soared past those rivals — which over the past few years had each occupied the spot — and even became the first to reach a market capitalization of $4 trillion.

So you might expect me to say that Nvidia now aims to reach $9 trillion in market cap — or that Microsoft or Apple have set such a goal.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

But another AI giant, one that’s underperformed many of its peers in recent times and actually is the cheapest of the Magnificent Seven tech stocks, just made a move that suggests it’s working toward that enormous market cap goal. The company offered certain executives stock options linked to market value reaching $9 trillion by 2031, according to The Wall Street Journal. Let’s find out more — and consider whether the stock is a buy.

The AI player that I’m talking about is Meta Platforms (NASDAQ: META). You may know this company more for its social media presence than for AI, as it owns some of the world’s most popular apps — from Facebook to Instagram. But Meta also has been focusing on AI in recent years, and it’s actually designated the technology as a key growth area.

Meta has gone all in on AI, developing its own large language model, building out data centers, and even forming a superintelligence lab. To power its AI goals, the company has made acquiring and keeping talent a priority. Last year, Meta bought a stake in Scale AI and hired its co-founder, Alexandr Wang, to join Meta as chief AI officer.

And in recent days, Meta has taken another step to offer certain executives an incentive to stay and help push the company to new heights. Meta is offering several executives, including chief financial officer Susan Li and president Dina Powell McCormick, stock options that will pay out based on Meta reaching a specific share price.

The options include several tranches, with the lowest being a stock price of $1,116.08 and the highest being a stock price of $3,727.12. This would imply gains of 88% or more than 500%, respectively, from Meta’s March 25 closing price of about $594. And it would equal a market value of more than $2 trillion at the lowest and $9 trillion at the highest.