There is something grotesque in the way the market undervalues Meta Platforms (META), as though it were a relic of some forgotten age rather than a company poised to shape the future. Up 30% year-to-date through September 8, Meta has quietly outpaced most of its peers in the tech sector, yet its valuation remains stubbornly low. At 25.4 times forward earnings, it trades at a steep discount compared to Nvidia (NVDA), despite undertaking what may become one of the most ambitious projects in the history of artificial intelligence.
Mark Zuckerberg, for all his flaws, is leading an effort that borders on the audacious: the pursuit of artificial general intelligence (AGI). And yet, Wall Street seems to be asleep at the wheel, failing to grasp the enormity of what is unfolding under its nose. This is not merely another tech stock; it is a wager on the future of computing itself.
A $72 Billion Gamble the Market Ignores
Meta’s plans for 2025 include spending between $66 billion and $72 billion-largely on AI infrastructure. To call this sum staggering would be an understatement. What does such an investment buy? City-scale compute power. Consider Hyperion, a facility in Louisiana planned to reach 5 gigawatts of capacity, sprawling over an area nearly the size of Manhattan. Prometheus, in Ohio, aims for 1 gigawatt by 2026. Five gigawatts could power roughly 4 million homes. Such figures are not just numbers; they represent the scale of Meta’s ambition.
The financials support this vision. In Q2 2025, revenue grew by 22% to $47.5 billion, with free cash flow at a robust $8.5 billion. Yet, more striking is the establishment of Meta Superintelligence Labs in mid-2025, a venture not aimed at trivial chatbots but at creating a personal superintelligence capable of assisting users across Meta’s vast ecosystem, from Instagram to WhatsApp. This is no incremental improvement; it is a leap into uncharted territory.
The War for Talent: Gains and Losses
Meta’s acquisition of a 49% stake in Scale AI for $14.3 billion underscores its commitment. Alexandr Wang, Scale AI’s co-founder, now leads Meta Superintelligence Labs, while Nat Friedman, former CEO of Microsoft GitHub, co-leads applied AI research. Before an August hiring pause, Meta recruited approximately 50 researchers from Alphabet, OpenAI, and Apple, some with offers reportedly reaching nine figures over four years. Notable hires include Trapit Bansal, an early OpenAI researcher, and Jian Zhang, formerly of Apple’s robotics division.
Yet, there is unrest. At least three researchers resigned within weeks, and two returned to OpenAI. The lab underwent reorganization twice within months of its launch. These departures suggest that money alone cannot secure loyalty. Still, Meta’s open-source Llama models remain competitive, and its unparalleled reach-3.48 billion Family Daily Active People (DAP)-ensures that when its AI matures, it will have a platform unmatched by any rival.
A Valuation Gap That Defies Logic
Nvidia commands a premium, trading at 38 times forward earnings because it sells tools for AI. Meta, building the very infrastructure Nvidia’s tools serve, trades at 25 times earnings. This disparity is absurd. Meta’s annual capital expenditures ($66 billion to $72 billion) rival two quarters of Nvidia’s data-center revenue. Critics point to Meta’s failed metaverse gamble, but AI is different. Every major tech company is racing toward AGI, for the winner will dominate the next era of computing. Meta has the resources, the computing power, and, crucially, the user base to compete.
When Infrastructure Becomes Destiny
Meta generates sufficient cash each quarter to fund its AI ambitions independently. OpenAI depends on external capital, and Anthropic leans on cloud partnerships. Meta claims its researchers enjoy industry-leading compute access, enabled by its scale and cash flow. This self-sufficiency is rare and valuable.
In plain terms, Meta offers extraordinary upside at a reasonable price. Even if its superintelligence efforts falter, the core business supports today’s valuation. Should its AGI ambitions succeed, the current price will seem laughably cheap. The risk-reward profile is compelling: limited downside from a profitable core, and significant upside if the superintelligence initiative succeeds. Wall Street’s failure to recognize Meta as a front-runner in the AGI race is the opportunity-and perhaps the folly-that defines this moment. 🌟
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2025-09-09 14:48