Two Stock Splits That Could Soar in 2025

As the market continues to rally, some companies are taking advantage of their soaring share prices by conducting stock splits. While Nvidia and Broadcom have already completed 10-for-1 splits this year, two lesser-known companies could be the next to announce stock splits and potentially soar in 2025. Let's take a closer look at these two companies and the analysts' bullish predictions for their stocks.



1. Super Micro Computer (SMCI)

Super Micro Computer, a customizable rack server and storage solutions specialist, completed a 10-for-1 stock split on September 30, 2024. Despite a roller-coaster year, Loop Capital's Ananda Baruah believes Super Micro's stock can reach $100 per share in 2025. If Baruah's prediction comes true, it would imply a staggering 174% upside from where shares closed on December 13, 2024.

The bull thesis for Super Micro Computer is simple: while Nvidia's graphics processing units (GPUs) are the undisputed top choice for accelerating computing capabilities in enterprise data centers, Super Micro has been one of the top options in data center infrastructure. Businesses wanting to maximize their first-mover advantage are spending aggressively on the physical infrastructure needed to make that happen.

In early August 2024, Super Micro Computer reported fiscal 2024 sales grew by 110% to almost $15 billion. Incorporating Nvidia's highly sought-after GPUs into its customizable rack servers is a big reason why demand for the company's data center infrastructure has been virtually insatiable.

However, things are far from perfect. Just three weeks after Super Micro announced its full-year results, noted short-seller Hindenburg Research released a report alleging "accounting manipulation." Since this report was released, Super Micro Computer has:

* Delayed filing its annual report with the Securities and Exchange Commission.
* Seen accounting firm Ernst & Young, which had previously raised concerns about its internal controls, resign as the company's auditor.
* Been the subject of an early-stage accounting probe by regulators, per The Wall Street Journal.
* Been booted from the Nasdaq-100.
* Enlisted Evercore for a possible capital raise.

Although an independent special committee doesn't expect any financial restatements and anticipates remaining listed on the Nasdaq exchange, there are a lot of questions that remain unanswered until Super Micro Computer files its annual report and it's signed off by an auditor. With this being said, it's unlikely that Super Micro makes a run at Wall Street's loftiest price target in the new year.

1. Lam Research (LRCX)

The other stock-split stock that one Wall Street analyst believes can soar in the new year is semiconductor wafer fabrication equipment company Lam Research. Lam's board approved a 10-for-1 forward split in late May 2024, which went into effect after the market closed on October 2, 2024.

Out of the more than two-dozen analysts that cover the company, none is more optimistic than Berenberg Bank's