The resurgence of stock splits is capturing attention in the financial world, especially as more companies opt for this strategy following impressive performance and soaring share prices. Once a common practice during the 1990s, stock splits waned over the years but have seen a notable comeback over the last decade. Investors often view the announcement of a stock split as a signal to reevaluate the potential of a company, backed by strong business fundamentals often experienced prior to a split.
Analysis indicates that companies initiating stock splits tend to outperform typical market gains significantly. For instance, data compiled by Bank of America reveals that stocks that split historically deliver an average return of 25% in the year following the announcement, contrasting sharply with the S&P 500’s more modest 12% increase during the same period.
As investors look for promising opportunities, three stocks that have undergone recent splits stand out for their potential upside, according to notable Wall Street analysts.
First on the list is Nvidia (NASDAQ: NVDA), a frontrunner in the artificial intelligence sector. Sharing a meteoric rise, Nvidia has become synonymous with advancements in AI, leveraging its leading-edge graphics processing units (GPUs) to facilitate operations in cloud computing and data centers. The company’s financial performance has been stellar, with Q2 fiscal 2025 results reflecting a staggering 122% year-over-year revenue growth, culminating in $30 billion. This high demand for AI technology significantly contributed to Nvidia’s stock soaring 716% since the beginning of 2023, leading to a significant 10-for-1 stock split in June. Analysts foresee an 82% potential upside, fueled by continued AI adoption.
Next up is Sirius XM Holdings (NASDAQ: SIRI), the undisputed leader in North American satellite radio services. With an impressive subscriber base of 34 million—and broader reach through its ad-supported Pandora music streaming—Sirius XM has established a significant presence in the market. Despite a challenging economic backdrop that has led to a slight dip in subscribers, experts believe that the recent slump in stock value is unwarranted. Analysts predict a potential upside of 179% following a recent merger that created market turbulence, positioning this stock as an attractive buy.
Lastly, Super Micro Computer (NASDAQ: SMCI) is carving out its niche in the ever-growing AI market. Specializing in custom server solutions, the company has seen demand spike as businesses increasingly integrate AI into their operations. After an impressive revenue growth of 143% year-over-year in its latest financial report, Supermicro’s stock has jumped 432% in 2023, thanks to the AI boom. With a 10-for-1 stock split also implemented recently, analysts estimate a staggering potential upside of 243% based on its leadership in the AI server niche.
In the current economic landscape, these stock-split companies provide intriguing prospects for investors looking to capitalize on substantial growth potential. With Nvidia, Sirius XM, and Super Micro Computer leading the charge, savvy investors may find enticing opportunities as these stocks prepare to potentially soar in value.
Investing in these highlighted stocks could position you well for the future as emerging technologies continue to reshape the market landscape. Whether it’s the AI-driven innovations of Nvidia, the reach of Sirius XM in satellite radio, or Super Micro’s pivotal role in server customization, these companies stand at the forefront of significant growth trajectories.
As you explore investment avenues, consider these stock-split opportunities carefully, as they may just be the catalyst needed for fantastic returns in your portfolio.