In recent years, the popularity of stock splits has increased again. This practice was common in recent decades, but had fallen out of favor and rebounded in recent years. Companies will typically take this course after years of strong business and financial performance, resulting in a rising share price.
There are indications that the strong performance that led to the stock split tends to continue. Companies that implement stock splits realize an average price gain of 25% in the year after the announcement, compared to an average increase of 12% for the S&P500according to data collected by Bank of America analyst Jared Woodard.
Here are three stock splits that still have a long road ahead, up as much as 215%, according to select Wall Street analysts.
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1. Broadcom: implicit advantage 36%
The first of our stock split stocks that represents an attractive opportunity for investors is Broadcom (NASDAQ:AVGO). The company offers a wide range of software, semiconductor and security products covering a wide range of mobile, broadband, cable and data centers.
In fact, the company reports that “99% of all Internet traffic flows through some form of Broadcom technology.” This means that Broadcom’s technology will play an important role in the adoption of artificial intelligence (AI).
The company’s recent results are telling. In Broadcom’s fiscal third quarter (ended August 4), revenue rose 47% year over year to $13 billion, driving adjusted earnings per share (EPS) up 18% to $1.24. The company continues to integrate VMWare, which has put pressure on earnings, but management expects a more meaningful contribution in fiscal 2025. Broadcom also raised its full-year revenue guidance to $51.5 billion, which would represent growth of nearly 44% .
The company’s track record of solid, consistent growth led to a 10-to-1 stock split in July. The stock price has more than tripled since the start of 2023 – coinciding with the start of the AI revolution – but many are Wall Street believes the best is yet to come. Rosenblatt Securities analyst Hans Mosesmann maintains a buy rating on Broadcom stock and a Street-high, split-adjusted price target of $240. This represents potential upside for investors of 36% compared to Friday’s closing price.
Mosesmann suggests that management’s guidance is conservative, leaving room for upward revisions. He sees particular opportunities in Broadcom’s application-specific integrated circuits (ASICs) and complementary products that support networking and switching, which will increase demand for AI. He also states that the integration of VMWare will boost Broadcom’s results.
Mosesmann is not alone in his bullish forecast. Of the 39 analysts who rated the stock in September, 35 rated the stock a buy or strong buy no recommended sale.
Investors might be surprised to learn that Broadcom’s stock is trading at less than 28 times next year’s expected earnings, which I think is a bargain given its long track record of growth and deep capabilities.
2. Nvidia: implicit advantage 85%
The second stock split stock with a long runway is Nvidia (NASDAQ: NVDA). The company’s graphics processing units (GPUs) have become the gold standard for a variety of applications, including video games, cloud computing and data centers. This technology also plays an important role in generative AI processing and provides the computing power that makes this possible.
This in turn has led to blockbuster results for Nvidia. For the second quarter of 2025 (ended July 28), Nvidia delivered record quarterly revenue that rose 122% year over year to $30 billion, while diluted earnings per share (EPS) rose 168% to $0.67. Results were boosted by the company’s data center segment – which includes the chips used for AI – as revenue rose 154% to $26.3 billion.
That marked Nvidia’s fifth consecutive quarter of triple-digit revenue and earnings growth, while its shares have risen 754% since the start of 2023, prompting a 10-to-1 stock split. The stock has been on a rollercoaster ride in recent months, with first losing more than a quarter of its value, then making a remarkable recovery and now trading less than 8% below its all-time high.
There’s probably more to come, but don’t just take my word for it. Rosenblatt analyst Hans Mosesmann reiterated his buy rating and Street-high price target of $200 for Nvidia, which represents a potential gain of 60% compared to Friday’s closing price.
The analyst believes investors are missing a key element of Nvidia’s success, saying: “The real story lies in the software that complements all good hardware. We expect this software aspect to increase significantly over the next decade in terms of total sales mix, with an upward bias towards valuation due to sustainability.”
He’s not the only one who believes Nvidia has further to go. Of the 60 analysts who issued a recommendation in September, 55 rated the stock as buy or strong buy no recommended sale.
I have no doubt whatsoever about the potential for Nvidia stock to move higher from here. In fact, I think the analyst’s price target could be conservative.
3. Supermicrocomputer: implicit advantage 215%
The last of our trio of stock split stocks is admittedly the most controversial. Super microcomputer (NASDAQ: SMCI)also known as Supermicro, has been a leading provider of custom-designed servers for over 30 years.
The company’s secret weapon is the building block architecture of its rack-scale servers. By designing interlocking key components, Supermicro customers can create the system that best fits their specific needs (and price range) rather than simply grabbing something off the rack. The company is also a clear leader in direct liquid cooling (DLC), which is ideally suited to handle the rigors of AI. CEO Charles Liang estimates that Supermicro controls between 70% and 80% of the DLC market.
In the fourth quarter of 2024 (ended June 30), Supermicro generated record revenue that rose 143% to $5.3 billion. At the same time, the company posted adjusted earnings per share that rose 78% to $6.25. While falling profit margins raised eyebrows, Liang blamed a temporary bottleneck in components and product mix and expects a recovery in due course. That said, the company’s track record of strong results preceded a 10-for-1 stock split that closed earlier this week.
However, Supermicro has become a battleground stock in recent weeks. At the end of August, a brief report from Hindenburg Research noted, among other things, accounting irregularities, sanctions violations and undisclosed transactions with third parties. The next day, Supermicro postponed the filing of its annual report, citing the need to assess the “design and effective operation of its internal controls.” As if that wasn’t enough, a report emerged showing that the US Department of Justice was investigating the company Wall Street Journal.
Despite the resulting uncertainty, some on Wall Street are undeterred. In the wake of these revelations, Rosenblatt analyst Hans Mosesmann maintained a buy rating and a split-adjusted Street-high price target of $130 on the stock. That represents a potential upside of 215% compared to Friday’s closing price. The analyst suggests that the recent stock price correction “seems exaggerated if you view the Hindenburg dynamic as old news or inaccurate.”
Not surprisingly, others on Wall Street have taken a wait-and-see approach. Of the eighteen analysts who covered the stock in September, nine still rate the stock as a buy or strong buy. The rest recommend holding on, and no advise to sell.
As a short seller, Hindenburg Research has a vested interest in driving the stocks it targets lower, so its motives are suspect. Furthermore, it has a mixed track record, so its conclusions should not be taken as gospel.
For investors who are willing to take a little risk, I think the opportunity to own Supermicro stock outweighs the risk associated with the – so far – unsubstantiated claims of a short seller. And as a Supermicro shareholder, my money is where my mouth is. Finally, at just 21 times earnings, Supermicro stock is a bargain.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Danny Vena holds positions at Nvidia and Super Micro Computer. The Motley Fool holds positions in and recommends Bank of America and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.