3 Scorching-Hot Artificial Intelligence (AI) Stocks Primed for a Stock Split — One of Which Is a Familiar Face (No, Not Nvidia or Palantir!)

From where I stand, since late last year, the development of artificial intelligence (AI) has been capturing immense interest on Wall Street. This remarkable technology, capable of making swift decisions without human intervention, is poised to be a game-changer. In fact, analysts at PwC predict that by 2030, it could contribute an astounding $15.7 trillion to the global economy.

Beyond the allure of artificial intelligence, another captivating theme among investors is the buzz surrounding stock splits in prominent companies. It seems that merging the current fervor around AI with the appeal of stock splits has become an irresistible draw for many market participants, fueling the ongoing bull market.

A stock split is a company’s action to adjust both its share price and total number of shares in the same ratio without affecting its market value or operational performance. Specifically, investors prefer companies undergoing forward splits because these are aimed at making the share price more manageable financially for individual investors.

Among many stocks that have surged following the AI revolution and stock-split excitement, only a select few AI companies seem poised to be the next Wall Street stocks to undergo a stock split – one of these companies having just recently implemented its first such action. Notably, neither Nvidia (NVDA) nor Palantir Technologies (PLTR) have yet reached prices that make them too expensive for ordinary investors, so they don’t qualify as representatives of the AI sector in this context.

CrowdStrike Holdings

The leading cybersecurity company, CrowdStrike Holdings (CRWD), might significantly gain from a forward split due to its stock performance. Since CrowdStrike’s initial public offering in June 2019, it hasn’t undergone a stock split; however, its share price has momentarily surpassed the symbolic $500 mark. Given that almost one-third of its shares are owned by regular investors, the conditions for a stock split are clearly present.

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One appealing feature of cybersecurity, particularly in terms of investment, is its transformation into an essential service. As businesses speed up their transition of data and customer information to online platforms and the cloud, the need for protection from external cybersecurity providers such as CrowdStrike grows consistently. This trend indicates that CrowdStrike’s operational cash flow might be highly consistent from year to year, irrespective of how the U.S. economy fares in terms of performance.

In terms of individual businesses, CrowdStrike’s Falcon security system has been well-received by its corporate customers. This platform relies on artificial intelligence and machine learning technologies to become increasingly intelligent and efficient as time goes on. Compared to traditional on-site security solutions, Falcon is more agile. Notably, clients have shown a readiness to pay a higher price for these services. Over the years, CrowdStrike has consistently maintained a gross retention rate of approximately 98%.

Another remarkable aspect of CrowdStrike Holdings lies in its talent for persuading clients to invest in extra premium services, which often yield high profits. By the end of April, approximately half (48%) of their clientele had acquired at least six cloud modules, with a quarter (22%) going for eight or more. Software-as-a-service businesses that rely on subscriptions tend to boast astonishing profit margins. Currently, CrowdStrike is achieving an 80% subscription gross margin and aims to increase this to between 82% and 85% in the long term.

From where I stand, it appears that the groundwork is being set for CrowdStrike’s stock to climb upwards, suggesting a potential forward stock split could be on the horizon.

Broadcom

Another AI-focused company poised to potentially follow in the footsteps of a stock-split company is well-known networking specialist Broadcom (AVGO). This company executed its initial split (10-for-1) in mid-July 2024, and currently trades at around $290 per share. Given that over a quarter of its shares are owned by retail investors, there could be renewed demands for Broadcom to simplify its stock ownership for those who cannot purchase fractional shares via their brokers.

While Nvidia dominates as the preferred choice for graphics processing units (GPUs) in AI-enhanced data centers, Broadcom’s networking solutions are often chosen to quickly connect thousands of these GPUs. This connection enables AI systems to make lightning-fast decisions with virtually no delay.

As per Broadcom CEO Hock Tan, three key hyperscale customers are anticipated to drive the majority of its AI growth up until 2027. Tan believes that the company’s AI sales could escalate significantly, rising from an estimated $12.2 billion in fiscal year 2024 (ending Nov. 3) to a range of $60-$90 billion within the next three years.

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However, it’s crucial to understand that Broadcom extends beyond being merely an AI stock. It’s a leading supplier of wireless chips and additional hardware for cutting-edge smartphones in the upcoming generation. Moreover, its product range includes networking and optical components for various industries, along with robust cybersecurity solutions designed for businesses.

If Broadcom’s steep upward trend over the past two years persists, there could potentially be another stock split on the horizon.

Microsoft

As an ardent investor, I’m excited to share my perspective on a potential next big split stock on Wall Street – none other than the software titan, Microsoft (MSFT)! With a storied history dating back to its initial public offering in March 1986, Microsoft has undergone nine splits thus far. The last adjustment for investors happened way back in February 2003.

What’s particularly intriguing is that over a third (34%) of its outstanding shares are held by individual, non-institutional investors like us! This could be an indication of the company’s strong appeal to retail investors – and perhaps a hint at a future split. Keep your eyes on Microsoft, folks!

Microsoft’s expertise in AI primarily lies within their application-based services. Azure, the second largest global cloud infrastructure service by total spending, is integrating generative AI solutions and enabling users to construct and educate large language models on this platform. By leveraging AI, Azure may maintain or boost its approximately 30% growth rate.

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While it’s crucial to focus on newer technologies like cloud-computing, AI, and quantum computing, we mustn’t overlook Microsoft’s established platforms – Windows and Office. Although their expansion periods have passed, Windows remains a leader in desktop and laptop markets. The revenue generated from these high-profit software sales offers Microsoft a substantial cash flow for reinvestment into emerging opportunities like cloud services and advanced technologies.

It’s important not to ignore old standbys like Windows and Office, even though their growth times are over. They still lead in desktop and laptop markets. The money earned from these profitable software sales can be used for investing in new areas, such as cloud solutions and cutting-edge technologies.

Microsoft boasts an impressive financial reserve, with a staggering $79.6 billion in cash, cash equivalents, and short-term investments at the end of the third quarter in 2025 (their fiscal year ending on June 30). Over the first nine months of this fiscal year, they’ve generated $93.5 billion in net cash from their operations. This substantial cash reserve gives them the flexibility to pursue risky ventures, make strategic acquisitions, and return wealth to shareholders through dividends and stock repurchases.

With Microsoft stock surpassing $500 per share, the need for a forward stock split is growing.

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2025-07-21 10:52