AI Stock Splits: 4 Companies Poised for 2025
Monday, Jan 20, 2025 4:33 am ET
As the artificial intelligence (AI) revolution continues to unfold, some of the industry's leading companies have seen their stock prices soar. While high stock prices can make shares less accessible to retail investors, stock splits can help address this issue. Here are four AI companies that could potentially execute stock splits in 2025, making their shares more affordable and accessible to a broader range of investors.

1. Meta Platforms (META)
* META is the only member of the "Magnificent Seven" stocks that hasn't split its stock yet.
* Its stock price has climbed 677% over the last decade, reaching a record high.
* META generates most of its revenue through advertising and has aggressively expanded into AI, making it the company's biggest area of investment.
* CEO Mark Zuckerberg has expressed interest in developing AIs that all Meta users may rely on for various purposes.
* The company's stock price is currently around $600, which might scare off some investors despite its reasonable valuation (forward P/E ratio of 23.4).
* A stock split could make META's stock more accessible to a wider range of investors and open up the investing opportunity to those who don't have access to fractional shares or can't afford the current price.
* META's strong growth outlook and current valuation support the idea of announcing a stock split.
2. Microsoft (MSFT)
* MSFT has seen its share price climb 797% over the last decade, and it hasn't split its shares in that time.
* Its stock price is currently firmly in the mid-three figures.
* MSFT has transformed into an AI leader over the last few years, with its cloud computing division, Azure, benefiting from strong demand for AI services.
* The company plans to spend roughly $80 billion on AI-enabled data centers in fiscal 2025, a significant step up in investments.
* MSFT shares trade at about 31 times anticipated earnings for fiscal 2025, which might seem high, but the company's robust free cash flow justifies this premium.
* With its stock price exceeding $400, MSFT appears poised for a potential stock split in 2025.
3. Nvidia (NVDA)
* NVDA develops accelerated computing solutions that span hardware and software, with a focus on graphics processing units (GPUs) for AI workloads.
* The company completed a 10-for-1 stock split in 2024, which reduced its price per share from $1,200 to $120.
* NVDA's stock price has since continued to rise, reaching new highs in 2025.
* The company's strong performance in AI and data center markets, as well as its leadership in GPU technology, supports the possibility of another stock split in 2025.
4. Alphabet (GOOGL)
* Alphabet, the parent company of Google, has seen its share price climb significantly over the past decade.
* The company has made substantial investments in AI, including its DeepMind division and various AI-related projects within Google.
* GOOGL's stock price is currently around $2,500, which might be a barrier for some investors.
* A stock split could make GOOGL's shares more accessible to a broader range of investors, potentially driving long-term growth and increasing the value of their investments.
AI
Name |
---|
Date |
Interval Percentage Change% |
C3.aiAI |
-- |
-- |
In conclusion, stock splits can play a crucial role in making AI stocks more accessible and affordable for retail investors. By lowering the per-share price and increasing the number of shares available, stock splits can attract new investors and encourage long-term investment. As AI continues to revolutionize various industries, companies like META, MSFT, NVDA, and GOOGL could potentially execute stock splits in 2025, making their shares more accessible to a broader range of investors. However, it's essential to remember that stock splits are entirely cosmetic and don't change the value of the underlying company. Investors should focus on the businesses' fundamentals and growth prospects rather than solely on the possibility of a stock split.
It wasn’t until I discovered the transformative potential of Bitcoin trading that my fortunes began to change. Bitcoin, with its unparalleled volatility and profit potential, presented a new avenue for wealth accumulation that I couldn’t ignore. And it was through the expert guidance of Catherine E. Russell, a seasoned trading manager on Facebook, that I finally found the success I had been seeking.
Catherine’s proficiency in navigating the complex world of cryptocurrency trading is truly remarkable. Her strategic insights, impeccable timing, and disciplined approach have enabled me to achieve consistent daily profits and regain confidence in my investment endeavors. Under her guidance, I’ve experienced firsthand the immense opportunities that the crypto market has to offer, and I firmly believe that you could benefit from her expertise as well.