Key Points
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These AI stocks may soon execute a forward stock split.
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Their stock prices are rising to levels that makes it a good time to split.
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Even if they don’t split, holding them can get you market-beating gains.
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Stock splits are the corporate equivalent of exchanging a crisp twenty-dollar bill for twenty singles. Nothing about the underlying value changes, but the gesture can change perception. It makes the stock much more appetizing to retail investors, and this alone causes stock split announcements to be rewarded by the market.
This is not true for the reverse variety, which shrinks the share count and lifts the price. Reverse splits are usually an act of triage, meant to keep a listing alive when fundamentals have deteriorated. Forward splits, by contrast, are a victory lap. They arrive only after sustained appreciation and are therefore viewed as a vote of confidence from the boardroom.
There were several high-profile stock splits last year, but so far this year, there haven’t been many to speak of. I blame this on the tariff spook this spring, which caused AI momentum to take a breather. But now that the rally is back on, many AI stocks seem like they are on the cusp of announcing stock splits. Here are three to look into:
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is the most obvious candidate for a stock split at the moment. That’s even though it is the only member of the “Magnificent Seven” that has never executed a stock split in its history. But now that META stock is over $750, management is increasingly tempted to do a stock split.
If the AI rally continues, META stock may cross $1,000 or more by the end of this year. Its financials have been stellar, with Q2 2025 results trouncing analyst estimates. Revenue grew 21.6% to $47.5 billion and beat analyst estimates by nearly 6%. EPS grew by 38.4% and beat analyst estimates by 21.8%. You’re paying 27 times earnings, which leaves a lot more room for upside if Meta keeps beating.
Meta Platforms has 3.48 billion daily users and unmatched pricing power for advertisers. The Family of Apps segment is a cash cow that keeps gushing more cash due to AI enhancement, cash that Meta is using to aggressively fund even more AI investments.
This momentum means a stock split may be just around the corner. The average price target of $872.5 implies 15.6% upside.
KLA Corp (KLAC)
KLA Corp (NASDAQ:KLAC) is a semiconductor process control and inspection company. It is a major beneficiary of the AI boom and should continue to benefit as countries are expanding their chip production capacity significantly. Unlike Meta, KLA Corp has a solid track record of stock splits, having undergone five total stock splits throughout its history. However, the company hasn’t executed a split in over 25 years.
KLAC stock is now at $870, with upward momentum likely taking it above $1,000 this year. This makes it likely that management will start considering a stock split to make it more appetizing.
Management authorized a $5 billion share repurchase program in late April and increased its dividends by 12%. Thus, they certainly have their eyes on the stock price and would like KLAC to trade at an optimal range for the industry it is in.
The average price target sees it at $964.4 in the next 12 months, implying 10.8% upside. The highest price target is $1,070.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) triggered the AI rally with its multi-billion-dollar gamble on OpenAI. This has paid off in spades, with the company’s AI-related segments soaring. Microsoft posted blockbuster Q4 FY 2025 earnings, with revenue up 18.1% to $76.44 billion, beating analyst estimates by 3.52%. EPS also beat estimates by 8.09% and reached $3.65, up 23.73%.
MSFT stock is now above $507. The stock price is likely to continue soaring if Microsoft continues on its current trajectory. Azure may soon overtake AWS as the largest cloud computing platform, as it grew 39% year-over-year to $19 billion. For a massive company like Microsoft, the growth is nothing but stellar.
Management may wait until $1,000 before splitting, but you’re not losing out if you buy and hold MSFT stock.
The average price target is $624.5 (~24% upside), with the highest at $700.
The post 3 Likely AI Stock Splits You Don’t Want to Miss Out on in 2025 appeared first on 24/7 Wall St..
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Author: Omor Ibne Ehsan
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