Meta Stock Eyes $2 Trillion as ‘Hypernova’ Glasses Spark Investor Buzz

In the tech world we have some devices that simplify life and then there are those that attempt to redefine the book of everyday life. The company’s next wager, which is a shiny new pair of AI-enhanced augmented reality glasses, named “Hypernova”, which has an estimated price tag of about $800, hopes to fall into the latter category.

Meta Platforms is getting very close to the $2 trillion market cap threshold, and its artificial intelligence aspirations may be the one thing that pushes it as a catalyst. The product might prove to be a game-changer for consumers and Meta’s stock. Yet, if any firm has the cash, the momentum, and the drive to make it happen, it’s Meta.

Capitalizing on the Basis of Ray-Ban Meta’s Momentum

Meta already has demonstrated that there’s demand for AI-enabled eyewear. The company sold more than two million units of its Ray-Ban Meta smart glasses, which were developed in collaboration with EssilorLuxottica. Those glasses, despite their popularity, remain constricted in their functionality, offering mostly photo and video recording, audio, and light AI engagement. With Hypernova, Meta is aiming for a complete display experience, either via in-lens screen or a holographic projection that could potentially make smart glasses a mass level computing device. 

As per the Counterpoint Research, Meta has a dominant 73% of the world’s smart glasses market, with shipments increasing over 200% year to year. Such dominance is the reason behind Meta’s doubling down. It is even taking the dive to invest $3.5 billion on EssilorLuxottica to bolster its production pipeline.

Focusing on $2 Trillion

Investors are closely observing. Meta stocks fell 0.7% in Monday’s premarket to $780.05, but the stock has already risen 34% year to date. It must close above $796.134 to officially surpass the $2 trillion market cap threshold. If Hypernova performs as Meta hopes and wants it to perform, the glasses will introduce a new revenue source while solidifying investor confidence in the firm’s ability to dominate the battle of AI hardware.

Meta CEO Mark Zuckerberg has characterized the opportunity in splendid terms, hinting that glasses could eventually put smartphones out of place as a universal personal device. Zuckerberg in an internal company memo said,

“Personal devices like glasses that understand our context because they can see what we see, hear what we hear, and interact with us throughout the day will become our primary computing devices”.

High Competition

Meta can claim to be leading the pack, but the competition is not far behind. Google is also getting ready to introduce its own Android-based smart glasses, while Amazon has picked up wearable start-up Bee, which creates a bracelet that records and transcribes conversation into AI-created reminders and to-do lists. OpenAI, on the other hand, has accessed Apple’s design with a $6.4 billion purchase of a Jony Ive owned firm, with the intent to create a complementary AI product.

The AI hardware market remains open wide, but Meta creates for it a singular opportunity. If it can combine beautiful design with practical AI capability at scale, Hypernova might place Meta at the center of the upcoming computing age.

Strategic Shift

Meta is going all in on the idea that AI-powered smart glasses will be the portal to a post-smartphone future. Zuckerberg is gambling with a claim to the post-phone world, challenging competitors such as Google, Amazon, and OpenAI to follow up.

The success of Hypernova won’t only define the company’s future hardware plans, but it might also be key to taking Meta beyond the record $2 trillion valuation mark. For investors, the question isn’t whether or not Meta sells millions of glasses, but whether it can establish itself as the default platform for AI on the move.

The brain behind Hypernova isn’t the device itself, but its timing. Through charging Hypernova at $800, Meta is smartly making it an ambitious but affordable choice to premium smartphones. Investors should be mindful about this that it’s much more than another piece of hardware, rather it’s a possible strategic shift that can redefine Meta’s revenue streams, diversify its business other than its ads, and enhance its positioning in the AI race.

As tech history is full of failed next big things, ranging from Google Glass to Amazon’s Fire Phone, execution will be everything. With the scope of Meta’s resources and EssilorLuxottica’s design credibility, the odds are a lot less against them this time.