Investors in Meta Platforms Inc. are eagerly anticipating the company's annual Connect conference, set to begin on Wednesday. The event is expected to reveal a prototype augmented reality eyewear product and feature insights from CEO Mark Zuckerberg on artificial intelligence applications and investments. Following a remarkable year with a 13% increase in shares since early September, Meta's stock hit an all-time high last week, only second to Nvidia Corp. in terms of growth among the Magnificent Seven cohort.

Michael Sansoterra, Chief Investment Officer at Silvant Capital Management, highlighted Meta's tangible benefits from AI usage as a driving force behind the stock's impressive performance. The Connect conference is viewed as a crucial opportunity for investors to gain valuable insights into Meta's AI strategies and future plans, providing essential information for assessing the company's trajectory in the competitive tech landscape.

Despite a slight slip in Meta's stock in early trading on Tuesday, the upcoming event is seen as a potential catalyst for further growth in mega-cap technology stocks. Investors are closely monitoring Meta's AI initiatives and capital expenditures to gauge the long-term sustainability of the AI trade. The Connect conference has historically set the tone for Meta's future earnings releases, with past events offering a glimpse into the company's innovative products and strategic direction.

In recent years, Meta has showcased groundbreaking AI initiatives at the Connect conference, such as the Meta AI assistant and AI chatbots on social media. While previous earnings releases following these events raised concerns over heavy spending on technology, Meta's ability to demonstrate tangible outcomes from AI investments has garnered investor confidence. CEO Mark Zuckerberg's emphasis on the positive impact of AI spending on Meta's core business has resonated well with investors, driving stock gains that outpace industry peers.