AI-Driven Companies Poised for Stock Splits Amid Market Surge

NEW YORK, NY — As artificial intelligence (AI) continues to reshape industries, several high-performing companies in the sector are emerging as prime candidates for stock splits. With market capitalizations soaring and share prices reaching new heights, firms like AppLovin, ASML Holding, Meta Platforms, and Microsoft are drawing attention from retail investors seeking more accessible entry points.

Stock splits, which divide existing shares into multiple shares without altering a company’s valuation, have gained popularity in recent years. Companies such as Amazon, Nvidia, and Tesla have already executed splits, making their shares more affordable for individual investors. While splits don’t change a company’s fundamentals, they can increase liquidity and attract a broader investor base.

AppLovin, a mobile app technology company leveraging AI for ad optimization, has seen its stock surge over 400% since its 2021 IPO. Currently trading at $332 per share with a market cap of $112 billion, the company has yet to split its stock. In Q3 2024, AppLovin reported $1.2 billion in revenue, a 39% year-over-year increase, and announced a $2 billion boost to its share repurchase program.

ASML Holding, a leader in photolithography machines essential for AI chip production, has undergone four stock splits since its 1997 IPO. Trading at $750 per share with a $304 billion market cap, ASML posted $8.2 billion in revenue and $2.3 billion in net income in Q3 2024. The company has consistently paid dividends since 2013, with its most recent payout totaling $1.64 per share.

Meta Platforms, formerly Facebook, has never split its stock since its 2012 IPO. The stock, now trading at $615 per share with a $1.6 trillion market cap, has risen over 60% in the past year. Meta’s AI-driven ad tools have boosted advertiser conversions by 7%, contributing to Q3 2024 revenue of $40.6 billion and net income of $15.7 billion. The company recently initiated its first quarterly dividend of $0.50 per share.

Microsoft, a pioneer in AI investments, has split its stock nine times since its 1986 IPO. With a $49.5 billion capital expenditure in the past year and a $13.8 billion investment in OpenAI since 2019, Microsoft continues to lead in AI innovation. The company reported $65.6 billion in revenue and $24.7 billion in net income for Q3 2024, supported by a robust balance sheet with $33.3 billion in net cash.

While none of these companies have announced upcoming stock splits, their strong financial performance and AI-driven growth make them attractive long-term investments. As CEO Satya Nadella of Microsoft noted, AI is driving a ‘fundamental change in the business applications market,’ underscoring the sector’s transformative potential.