Last week, Meta Platforms (NASDAQ: META) stock surged to record highs above US$747, valuing the tech giant at a market cap of US$1.8 trillion. META stock is now up 350% in the last three years and has returned over 600% in the past decade. The ongoing bull run for META stock signals the beginning of what could be the most transformative decade in artificial intelligence (AI), positioning the company as my top technology sector pick for the 2020s.
Mark Zuckerberg’s creation of Meta Superintelligence Labs represents a strategic masterstroke that differentiates Meta from competitors. By assembling an elite team including former Scale AI CEO Alexandr Wang and ex-GitHub CEO Nat Friedman, Meta is building what amounts to an AI dream team.
The company’s willingness to offer US$100 million signing bonuses demonstrates a commitment to securing top talent from OpenAI and other rivals.
Meta’s unique advantages extend beyond its hiring prowess. Its massive user base of over one billion monthly active users across its platforms provides unparalleled training data for AI models.
Unlike pure-play AI companies burning venture capital, Meta’s profitable core business generates the resources needed for sustained AI investment at scale.
The timing couldn’t be better. While competitors focus on narrow AI applications, Meta is positioning for the superintelligence era, technology that exceeds human capability. With AI glasses and wearables gaining traction, Meta is building tomorrow’s computing platform today.
Meta’s parallel approach to developing Llama models while researching next-generation capabilities creates multiple paths to victory. As AI reshapes every industry over the next decade, Meta’s combination of talent, data, distribution, and financial resources makes it uniquely positioned to lead the superintelligence revolution.
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A strong performance in Q1 of 2025
In the first quarter (Q1) of 2025, Meta reported revenue of US$42.3 billion, up 16% year over year, showcasing a successful transition into an AI-powered behemoth. The social media giant’s strategic focus on AI is paying dividends across multiple fronts, positioning it for sustained long-term growth.
CEO Mark Zuckerberg outlined five major AI opportunities driving Meta’s future: improved advertising through AI agents, more engaging content experiences, business messaging automation, Meta AI adoption, and AI-enabled devices.
These initiatives are already showing results, with Meta AI reaching nearly one billion monthly active users and AI-driven recommendation improvements delivering 7% increased time spent on Facebook and 6% on Instagram.
Meta’s open-source Llama models have achieved notable traction with 1.2 billion downloads, establishing Meta as a leader in accessible AI development. This strategy creates a competitive moat while fostering innovation across the broader ecosystem.
Meta continues to invest in AI infrastructure aggressively and forecasts to spend between US$64 billion and US$72 billion in capital expenditures this year.
Is META stock overvalued right now?
Meta continues to expand its portfolio of AI products and services. For instance, the Ray-Ban Meta AI glasses represent a breakthrough in consumer AI devices, with sales tripling year over year and monthly users rising four times in Q1.
Despite regulatory challenges in Europe and macroeconomic uncertainties, Meta’s diversified AI strategy across advertising, consumer products, and infrastructure creates multiple paths to steady returns. A unique combination of massive user data, advanced AI capabilities, and hardware innovation indicates Meta is well-positioned to capture value from the AI revolution.
Despite its massive size, Meta is forecast to increase sales from US$164.5 billion in 2024 to US$290 billion in 2025. Comparatively, adjusted earnings are estimated to expand from US$23.86 per share to US$42.14 per share in this period.
If META stock is priced at 25 times forward earnings, which is below its current multiple of 28 times, it will trade around US$1,055 in early 2029, indicating an upside potential of 47% from current levels.
