Tech Giants Race Towards $1 Trillion and $3 Trillion Market Caps, Fueled by AI Advancements

Meet the Unstoppable Stock That Could Join Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, and Taiwan Semiconductor in the $1 Trillion Club by 2030. | The Motley Fool

Decades of information technology (IT) and cloud systems expertise could drive this artificial intelligence (AI) specialist to new heights. One of the biggest secular tailwinds of the past several years has been that of artificial intelligence (AI). Lest there be any question, a quick scan of the top-ranking companies by market cap helps to dispel any remaining doubts. In fact, nearly all the companies in the $1 trillion club have one thing in common -- they are each developing, deploying, or manufacturing products on the cutting edge of AI. Apple has a long history of integrating sophisticated algorithms to give its state-of-the-art products an edge. Nvidia graphics processing units (GPUs) provide the technology that makes generative AI possible. Microsoft joined forces with OpenAI to spur the evolution of ChatGPT. Alphabet, Amazon, and Meta Platforms have all developed top-shelf generative AI models that are bringing the technology to the masses. Taiwan Semiconductor Manufacturing is the foundry that produces the vast majority of the most advanced chips used for AI. With a market cap of just $483 billion, it might seem premature to nominate Oracle (ORCL 0.74%) for membership in this prestigious fraternity. However, the company's recent business performance and management's forecast suggest that the accelerating demand for generative AI could drive additional growth for years to come. Oracle has previously reported that 98% of Global Fortune 500 companies use some combination of its database, cloud, and enterprise software. This puts the company in a prime position to help new and potential customers interested in adopting AI. This has helped fuel robust overall growth. During Oracle's fiscal 2025 first quarter (ended Aug 31), revenue grew 7% year over year to $13.3 billion, while its operating income growth accelerated to 21% -- but that's just the beginning. Oracle continues to experience a surge of new business, and CEO Safra Catz pointed out a growing trend of customers opting for "larger and longer contracts as they see firsthand how Oracle Cloud services are benefiting their businesses." This trend is fueling the company's remaining performance obligation (RPO) -- or contracts not yet included in revenue -- which surged 53% year over year to $99 billion. When RPO is growing faster than revenue, it points to a robust pipeline of revenue growth, which bodes well for the future. As a result, the company expects its fiscal 2025 revenue to accelerate in each successive quarter, ultimately growing by double-digits for the year. In the second quarter, Oracle expects its revenue growth rate to climb to 8% at the midpoint of its guidance, fueled by cloud revenue growth of 24%. This will drive adjusted earnings per share (EPS) growth of 8%. Oracle has a distinguished track record of helping customers adopt appropriate cloud solutions, which makes it easier when they make the decision to join the AI revolution. That said, this paradigm shift will take years, if not decades, to complete. According to Wall Street, Oracle is expected to generate revenue of $58 billion in its fiscal 2025 (which began Jun. 1), giving it a forward price-to-sales (P/S) ratio of 8. Assuming its P/S remains constant, Oracle would need to grow its revenue to approximately $120 billion annually to support a $1 trillion market cap. Analysts are forecasting revenue growth of about 20% for the full fiscal year and 12% thereafter. If the company achieves these benchmarks, Oracle could reach the $1 trillion market cap by 2032. However, management just increased its outlook and is guiding for revenue of at least $104 billion by fiscal 2029, which works out to a compound annual growth rate (CAGR) of more than 16%. If Oracle hits its internal targets, it will likely reach a market cap of $1 trillion by 2030 -- if not sooner. Estimates regarding the impact of generative AI continue to ratchet higher. The market could be worth between $2.6 trillion and $4.4 trillion annually, according to global management consulting firm McKinsey & Company. If the company can continue to serve customers looking to adopt AI, this will reflect in its growth rate and Oracle will join the ranks of trillionaires sooner than investors might imagine.

Prediction: 1 Unstoppable Stock Will Join Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta in the $1 Trillion Club In 2025 | The Motley Fool

This artificial intelligence company could soon join the stock market's most exclusive club. U.S. stock exchanges are home to eight companies with a valuation of at least $1 trillion: Apple was the founding member of the exclusive $1 trillion club in 2018. Warren Buffett's Berkshire Hathaway and Taiwan Semi are the newest members, having joined in the last few months. And despite only joining in 2023, Nvidia has leapfrogged tech giants like Microsoft to become the second-most valuable company in the world, thanks to soaring demand for its artificial intelligence (AI) data center chips. I predict one more company is about to join them. Broadcom (AVGO 0.06%) has a market capitalization of $840 billion as of this writing, following an incredible 527% gain in its stock over the last five years. Like Nvidia, Broadcom is experiencing incredible demand for its AI data center hardware, and that could be the company's ticket to the $1 trillion club in 2025. Broadcom stock only needs to gain another 19% to get there, and with two full months remaining in 2024, I'm not discounting the possibility that it could cross the $1 trillion milestone before the new year. But here's why I think 2025 is a more realistic target. Broadcom has a history of innovation that spans decades. It pioneered everything from optical mouse sensors for computers to fiber optic transmitters for data communications. However, starting in 2016, it evolved into far more than a semiconductor and electronics company. That was the year Broadcom merged with chip giant Avago Technologies. Since then, it has spent nearly $100 billion acquiring other companies, including semiconductor equipment supplier CA Technologies, cybersecurity giant Symantec, and cloud software provider VMware. Each of them contributes to Broadcom's growing portfolio of AI products and services. On the hardware side, Broadcom is having incredible success supplying custom AI accelerators (a type of chip used for processing AI workloads) to hyperscale customers -- which typically includes Microsoft, Amazon, and Alphabet. During the recent fiscal 2024 third quarter (ended Aug. 4), Broadcom said sales of its AI accelerators surged by three and a half times compared to the year-ago period. The company also supplies Ethernet switches for data centers, which regulate how quickly information travels between chips and devices. Many AI data centers cluster tens of thousands of graphics processing units (GPUs) or accelerators together. High-quality networking equipment ensures developers can build AI models at the fastest speed possible, which also keeps costs down. Broadcom said sales of its Tomahawk 5 and Jericho3-AI Ethernet switches grew fourfold (year over year) during Q3. That isn't surprising given the strength of its accelerators business, and Nvidia's GPU business, for that matter. Tech giants are spending tens of billions of dollars building AI data centers right now, which is a powerful tailwind for Broadcom's networking equipment. Broadcom generated $13.1 billion in total revenue across all of its businesses in Q3, which was a 47% increase from the year-ago period. Of that, $3.8 billion was attributed to the inclusion of VMware's revenue. Broadcom closed the acquisition of that company in 2023, and only started reporting its revenue on a consolidated basis this year, which is temporarily inflating its total revenue growth. Broadcom said AI products and services contributed $3.1 billion to its overall revenue during the quarter, and that could be the fastest-growing part of the entire organization going forward. In the upcoming fourth quarter, Broadcom expects to deliver $3.5 billion in AI revenue. This will represent a sequential increase of over 10%, compared to forecasted sequential growth of just 6.8% for its total revenue overall (which is expected to come in at $14 billion). Broadcom is on track to generate a record $51.5 billion in total revenue for fiscal 2024. The company originally expected AI to account for $11 billion of that figure, but the segment has been so strong that management recently increased its forecast to $12 billion. Broadcom isn't consistently profitable on a GAAP accounting basis, so we can't use the traditional price-to-earnings (P/E) ratio to value its stock. However, we can use the price-to-sales (P/S) ratio, which divides the company's market capitalization by its trailing 12-month revenue. Based on that calculation, Broadcom's P/S ratio is currently 17.6. To be clear, that is not cheap -- it's close to double the stock's average P/S ratio of 8.9 over the last five years. However, Broadcom's strong AI growth under the surface of its total revenue is enticing investors to pay a premium for its stock. As I mentioned, Broadcom only has to gain 19% from here to join the $1 trillion club, so if its P/S ratio remains constant, it simply has to grow its revenue by 19% in fiscal 2025 (which begins in December this year) to get there. Wall Street expects Broadcom's revenue to grow by 17.5% in fiscal 2025, which is in the ballpark. However, since the company raised its fiscal 2024 AI revenue forecast by a whopping $1 billion last quarter alone, there is a very strong possibility that the Street's estimate for next year is low. Nvidia CEO Jensen Huang believes data center operators will spend $1 trillion building AI infrastructure over the next five years. If he's right, I think there is a good chance Broadcom will blow away all expectations in 2025. The key risk in my prediction is that Broadcom's P/S ratio could shrink because investors become averse to stocks with high valuations, which could add years to its journey toward the $1 trillion club. That's something to keep in mind before buying in. But as long as investors maintain a long-term horizon of five years or more, they still have the potential to do very well in this stock.

2 Stocks That Could Join Nvidia in the $3 Trillion Club | The Motley Fool

Nvidia (NVDA 0.78%) has been one of the best stocks to profit off the artificial intelligence (AI) boom over the last two years. Shares of the AI chip leader have surged more than 820% since 2022 and currently have of a market cap of nearly $3.3 trillion -- trailing only Apple's $3.5 trillion. The following "Magnificent Seven" stocks are not far behind and could deliver exceptional returns in the next few years to join Nvidia and Apple in the $3 trillion club. Amazon (AMZN 0.78%) shares have delivered life-changing returns to investors over the last few decades and continue to generate market-beating gains. The stock has doubled over the last five years, bringing its total market cap to $2 trillion. Based on the company's opportunities, the shares could climb another 50% in the next few years to reach $3 trillion in total market value. When you deliver billions of orders each year, every last mile of cost adds up. Amazon was able to reduce the cost to serve retail customers in 2023 for the first time since 2018. It continues to find ways to strip costs out of the retail business. The company's operating profit has doubled over the last year, as it shortens and optimizes delivery routes. Reducing costs can benefit Amazon more than simply boosting its short-term profitability. It also can allow Amazon to gain market share in online shopping by lowering prices on select goods. Shortening transportation distances also means customers receive their orders faster, and that can lead to more frequent shopping. Amazon says it has plenty of opportunities to reduce costs by using automation and robotics and continuing to build its same-day delivery network. The company already controlled 37% of the U.S. e-commerce market in 2023 -- 6 times the share of No. 2 Walmart, according to Statista. Amazon's efforts to improve efficiencies and speed up order delivery show a relentless competitor continuing to look for ways to protect and stretch its lead. This is the kind of business you want protecting and growing your savings for retirement. Analysts expect earnings to reach $7.30 per share by 2026, an increase of 52% over 2024 estimates. Amazon investors can expect the stock to climb along with that increase and reach a $3 trillion market cap within two years. Shares of Alphabet (GOOG 0.33%) (GOOGL 0.30%) also doubled in the last five years. The company's market cap is currently hovering around $2 trillion, putting it within striking distance of Nvidia's market value. While Amazon Web Services is the leading cloud service provider for enterprises, many businesses prefer Google Cloud. Google has been steadily gaining share of the cloud market in recent years. New AI services offered in Google Cloud are fueling its momentum. The company credited strong demand for AI infrastructure and generative AI services for driving recent growth in the cloud. Google Cloud's revenue grew to more than $10 billion in the second quarter, but equally important, the segment's operating profit nearly tripled to surpass $1.1 billion last quarter. This shows Alphabet is earning a high return on investment on AI tools offered to Google Cloud customers like Vertex and the Gemini AI model. It's also impressive that Alphabet can make the necessary investments to drive strong demand for cloud services and AI while producing solid earnings growth. Earnings grew 31% year over year in Q2, and analysts expect Alphabet's earnings to grow 16% over the long term. By 2026, the consensus estimate has Alphabet's earnings reaching $10. If Alphabet earns a market average price-to-earnings ratio of around 27, the shares could be worth $270, implying upside of 62%. It could easily hit a $3 trillion market cap in two years.

Meet the Unstoppable Growth Stock That Could Join Apple, Nvidia, and Microsoft in the $3 Trillion Club by 2028. | The Motley Fool

Robust growth and an improving economy should help drive this tech stalwart to new heights. It was a mere 20 years ago that industrial and energy titans General Electric and ExxonMobil were the world's most valuable companies when measured by market cap, with values of $319 billion and $283 billion, respectively. Now, just two decades later, technology interests lead the field. Heading up the list are some of the world's most familiar technology names. Apple tops the charts at $3.5 trillion (as of this writing). Nvidia and Microsoft are trailing close behind, with market caps of $3.2 trillion and $3.1 trillion, respectively. With a market cap of just $2 trillion, it might seem a bit early to suggest that Alphabet (GOOGL -1.35%) (GOOG -1.34%) has the makings for membership in the $3 trillion club. However, the stock has gained 88% since early last year and 172% over the past five years, and there's every reason to believe its ascent will continue. A combination of an improving economy, Alphabet's market strength, and gains in the field of artificial intelligence (AI) could provide the boost the company needs to join this exclusive society. The widespread challenges of the past few years have been glaringly obvious, marked by macroeconomic headwinds and the worst inflation rates since the early 1980s. These conditions weighed heavily on each of Alphabet's major business segments and the stock plunged as much as 44% in response. However, there's been a marked improvement in recent months. In September, the Federal Reserve Bank cut interest rates for the first time since March 2020, and consumer confidence jumped to its highest level in months. The economic rebound has had a dramatic effect on Alphabet's results. In the second quarter, revenue of $84.7 billion climbed 14% year over year, while diluted earnings per share (EPS) of $1.89 jumped 31%. Each of the company's major operating segments did their part to boost the results. The rebound in advertising, which has suffered the most in recent years, had the most profound impact. Google advertising, which provides the bulk of Alphabet's revenue, climbed 11% year over year, while Google Cloud -- the company's fastest-growing segment -- jumped 29%. Google has long been the undisputed leader in search, recently capturing 90% of the search market, according to internet statistics aggregator StatCounter. The company has worked to consistently improve its search acumen and the underlying algorithms, becoming something of an AI subject matter expert along the way. It's also the undisputed leader in digital advertising, fueled primarily by Google Search and YouTube but also by its suite of products that count billions of users each. In 2023, Google captured an estimated 39% of worldwide digital advertising revenue, according to data compiled by Statista. For context, its closest competitor -- Meta Platforms -- garnered just 18%. This dominance is expected to continue. Alphabet is also a strong contender in the realm of cloud computing. Google Cloud is part of the "Big Three" as the third-largest provider of cloud infrastructure services. The company controlled roughly 10% of the market in the second quarter, according to data supplied by Canalys. It was also the fastest-growing, with year-over-year revenue growth of 30%. Helping fuel demand for Google Cloud is the company's generative AI offerings. Alphabet has been using AI for years to inform its search results, and the company has refocused that expertise to fuel a suite of AI-powered models led by Gemini, one of the leading foundational AI models in the world. This is attracting new users to Google Cloud. I'd be remiss if I didn't address the elephant in the room. The antitrust case against Alphabet is one step closer to completion. The court found that Google had violated antitrust law, and the U.S. Justice Department is mulling recommendations regarding the appropriate remedies, though the judge will have the final say. One of the potential outcomes is a breakup of the company, which is something that hasn't happened in decades. There are other less severe proposals, like sharing Google's search code with rivals, blocking other providers from paying Google to be its default search engine and more. A final decision won't be reached for at least a year, and if Alphabet appeals (it says it will), the case could go on for several more. Wall Street hates uncertainty, so this has been an overhang for Alphabet stock in recent months. All that aside, even if Alphabet were to be broken up -- and I don't believe it will -- that could unlock additional value, enriching shareholders along the way. So, the current concerns are merely noise, in my opinion. Alphabet currently boasts a market cap of roughly $2 trillion, which means it will take stock price gains of about 47% to drive its value to $3 trillion. According to Wall Street, Alphabet is expected to generate revenue of $347.4 billion in 2024, giving it a forward price-to-sales (P/S) ratio of roughly 6. Assuming its P/S remains constant, Alphabet would have to grow its revenue to roughly $510 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting revenue growth for Alphabet of about 11% annually over the next five years. If the company achieves that benchmark, it could achieve a $3 trillion market cap as early as 2028. It's worth noting that Alphabet has grown its annual revenue by 368% over the past decade, so Wall Street could be lowballing its forecast. Furthermore, Alphabet is currently selling for roughly 24 times earnings, a significant discount compared to the multiple of 30 for the S&P 500. The aforementioned uncertainty is providing a very attractive entry point for savvy investors who plan to buy and hold for the long term.

Meet the Unstoppable Stock That Could Join Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, and Taiwan Semiconductor Manufacturing in the $1 Trillion Club by 2035 | The Motley Fool

Consistently strong growth and incremental opportunities could push this tech titan to new heights. One of the biggest secular tailwinds in recent years is the advent of artificial intelligence (AI). The latest advancements in AI went viral early last year, and the list of companies in the $1 trillion club is littered with businesses on the leading edge of this next-generation technology. For example, Apple products -- including Siri and Maps -- have always embraced AI, while Microsoft, Alphabet, Amazon, and Meta Platforms have developed seemingly impenetrable moats by integrating AI deeply into their respective business operations. Nvidia and Taiwan Semiconductor Manufacturing have developed the chips that make AI possible. Netflix (NFLX 11.09%) is one of the pioneers of AI, using cutting-edge algorithms to inform its streaming recommendations and production choices, yet the company has fallen out of favor with some who are busy chasing the latest shiny new thing. Investors might be surprised to learn that Netflix just delivered another quarter of double-digit growth. With a market cap of just $324 billion, it might seem premature to suggest Netflix is bucking to join its peers in the trillion-dollar club, yet the stock has gained more than 100% over the past year and 1,380% over the past decade, and the evidence suggests its ascent will continue. Netflix just reported its third-quarter results and sailed past expectations on every important metric. Revenue of $9.83 billion climbed 15% year over year, generating robust profit growth as earnings per share (EPS) of $5.40 soared 45%. Revenue was fueled by strong paid subscriber growth that jumped by more than 5 million, an increase of 14%. The bottom line was driven higher by an expanding operating margin that increased by an incredible 720 basis points to 29.6%. For context, analysts' consensus estimates were calling for revenue of $9.77 billion and EPS of $5.12, accompanied by subscriber additions of 4.5 million, so Netflix beat across the board. Perhaps more importantly, management expects its growth streak to continue. Netflix is guiding for fourth-quarter revenue of $10.1 billion, up nearly 15%, while EPS of $4.23 would more than double. On the conference call to discuss the results, Netflix laid out plans to continue its impressive growth, highlighting three particularly significant opportunities. Netflix has been dabbling in video games for some time now, but the company is beginning to see greater interest from its audience for the games based on the company's growing library of intellectual property. Management is particularly excited about the title based on Squid Game, the company's most-watched series. Management is also leaning into its recent successes with live events. Netflix is live-streaming a boxing match between Mike Tyson and Jake Paul on Nov. 15. The company also has exclusive rights to two NFL games on Christmas Day: The Super Bowl LVII-winning Kansas City Chiefs vs. the Pittsburgh Steelers, and the Baltimore Ravens vs. the Houston Texans. Finally, Netflix is the new home of WWE Raw, the highly rated wrestling entertainment show, with weekly episodes beginning in January 2025. However, the company's biggest opportunity is its growing digital advertising business. Netflix noted during the call that its audience and ad inventory are currently growing faster than the company's ability to capitalize on that growth. Members signing up for the lowest-priced ad tier increased 35% quarter over quarter and accounted for 50% of new members in the countries where Netflix shows advertising. The company has a couple of important initiatives that are designed to accelerate its ads business. First, Netflix is launching its first-party ad server, beginning in Canada this quarter, then in the rest of its advertising markets in 2025. The company is also leaning into its partnership with The Trade Desk to expand its advertising reach. Netflix noted that ad-tier members are similar to other subscribers in terms of hours watched and preferred titles, which shows viewing patterns are consistent. Management expects ad revenue to double (off a small base) in 2025. Each of these initiatives represents an incremental growth driver, which helps illustrate how Netflix plans to continue its robust growth. Netflix currently has a market cap of $323 billion, which means it will take stock price gains of roughly 207% to drive its value to $1 trillion, but there's a clear path for growth over the coming decade. According to Wall Street, Netflix is expected to generate revenue of $38.74 billion in 2024, giving it a forward price-to-sales (P/S) ratio of roughly 8. Assuming its P/S remains constant, Netflix would have to grow its revenue to roughly $357 billion annually to support a $1 trillion market cap. Wall Street is currently forecasting revenue growth for Netflix of about 26% annually over the next five years. If the company achieves that benchmark, it could achieve a $1 trillion market cap as soon as 2035. It's worth noting that Netflix has grown its annual revenue by 562% over the past decade, and its net income has soared 1,450%, so Wall Street's outlook could well be conservative. Furthermore, as this quarter illustrates, Netflix has a habit of outpacing Wall Street's expectations, which could also shave years off this timeline. Finally, Netflix is currently selling for roughly 39 times earnings, which might seem expensive at first glance, but consider this: Wall Street expects Netflix to generate EPS of $23.11 in 2025, which would represent a multiple of 30 -- the same as the S&P 500. Considering Netflix's strong track record of growth and its significant opportunity, I'd say that's a fair price to pay for a company expected to generate consistent double-digit growth over the next five years.

Meet the Unstoppable Growth Stock That Could Join Apple, Nvidia, and Microsoft in the $3 Trillion Club by 2030. | The Motley Fool

Consistent growth and economic tailwinds should help this tech titan join rarified company. There's been a noteworthy shift over the past couple of decades that has seen technology companies ascend the ranks of the world's most valuable companies. Twenty years ago, industrial and energy bellwethers General Electric and ExxonMobil reigned supreme when measured by market cap, valued at $319 billion and $283 billion, respectively. Now, just two decades later, some of the best-known names in technology are tops. Leading the charge are three of the most familiar companies in the world today. All are leaders in the field of technology and need no introduction. Apple currently tops the list at $3.5 trillion, with its stock recently hitting new all-time highs. Nvidia also notched a new record high this week, moving ahead of Microsoft, as the two now boast market values of $3.4 trillion and $3 trillion, respectively. With a market cap of $1.4 trillion, it might seem presumptuous to suggest that Meta Platforms (META -0.08%) has all the makings of a $3 trillion club member. However, the stock has been on a roll, gaining 80% over the past year and 694% over the past 10 years (as of this writing), and its winning streak appears poised to continue. The consistent growth of the company's social media platform, ongoing strength in digital advertising, and brilliant strategy for leveraging artificial intelligence (AI) should combine to help Meta take its place in this exclusive society. There's no denying that Meta Platforms suffered during the economic slump. Yet the mark of a resilient business is the ability to bounce back, and the evidence of that rebound is undeniable. In the second quarter, Meta delivered revenue that rose 22% year over year to $39 billion, fueling diluted earnings per share (EPS) that surged 73% to $5.16. Fueling its success is the company's reliable user growth, as those who stopped by one of Meta's family of social media platforms -- which includes Facebook, Instagram, Threads, Messenger, and WhatsApp -- increased 7% year over year to 3.27 billion. These billions of daily users form the captive audience for its digital advertising, an industry that rebounded sharply since the economic downturn. Meta is part of a duopoly in the online marketing space. Alphabet's Google captured an estimated 39% of the worldwide digital advertising market, with Meta taking up the second spot with 18%, according to data compiled by business intelligence platform Statista. Its online marketing is inextricably woven into the fabric of its social media empire, helping drive Meta's ongoing success. Global advertising is expected to increase by roughly 8% and reach more than $1 trillion this year, according to ad industry researcher WARC Media. Social media is forecasted to be the fastest-growing segment in digital advertising, growing to 22% of total ad spending, according to the data. Meta figures prominently in the report, which says Meta is "on course to record oversized gains in the coming months." As one of the biggest players in the adtech industry, Meta will benefit from the ongoing rebound. Advertising aside, Meta has made a number of strategically important moves to profit from the accelerating adoption of artificial intelligence (AI). With billions of daily social media visitors, the company mined its vast treasure trove of data to create a suite of top-tier language models, which form the foundation for generative AI. The fruit of those labors is LLaMA (Large Language Model Meta AI), the AI system that fuels its Meta AI chatbot. The latest version -- LLaMA 3 -- is "one of the world's leading AI assistants," according to the company. By making LLaMA open source, Meta is hoping to boost adoption, which will lead to even more data to leverage. While Meta AI is free to individual users, the company charges enterprises and cloud infrastructure providers, which peddle it on their cloud platforms. While AI makes all the headlines, there are other potential ways for Meta to win. The company has invested heavily in Meta's Reality Labs, which housed its Oculus virtual reality (VR) business, Quest VR headsets, and its ambitions for the metaverse. While these are little more than sidelines at this point, CEO Mark Zuckerberg believes these will be key to Meta's future growth and, eventually, its bottom line. With the trifecta of a recovery in digital advertising, the opportunity represented by generative AI, and its other initiatives, it isn't hard to envision a path for Meta Platforms to make its way into the $3 trillion club. Meta has a market cap of roughly $1.46 trillion (as of market close on Oct. 17), so it will take stock price gains of roughly 105% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $161.9 billion in 2024, giving the stock a forward price-to-sales (P/S) ratio of 9. Assuming its P/S remains constant, Meta would need revenue of roughly $332 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth of nearly 14% annually over the coming five years for Meta. If the company achieves that target, it could achieve a $3 trillion market cap as soon as 2030. It's worth noting that Meta has grown its annual revenue by more than 900% over the past decade, so those estimates could well be conservative. Furthermore, at 29 times earnings, Meta is selling for a discount compared to a multiple of 30 for the S&P 500 -- yet boasts stock price gains of 694% over the past 10 years, far exceeding the 214% increase for the S&P 500. That helps illustrate why Meta Platforms is worth every penny, particularly as it pursues multiple paths to success.