3 AI Companies Likely to Follow Nvidia’s Stock Split

Stock splits are gaining popularity once again, with several high-profile splits occurring recently. These splits make it easier for smaller investors to buy shares and can boost stock performance, although it's not guaranteed. Here are three companies that could be next in line for a stock split:

1. Meta Platforms

Meta Platforms has emerged as a strong player in the AI field, boasting 3.2 billion daily users across its platforms, an increase of 7% year over year. The company's earnings per share (EPS) more than doubled last quarter compared to the previous year, alongside a nearly 30% revenue increase and a significant operating margin improvement. Meta also cut 10% of its staff this year, contributing to an 83% rise in its share price, now hovering above $500. Meta has never split its stock, making it a prime candidate for a future split.

2. Super Micro Computer

Super Micro Computer (Supermicro) has seen impressive gains this year, rivaling even Nvidia. The company designs and manufactures hardware critical for AI and has a diversified revenue stream. Supermicro uses Nvidia's chips in its data center servers. With expected EPS growth of over 100% from last year, Supermicro’s shares, currently trading near $900, are poised for a potential split.

3. Netflix

Although primarily known for its streaming services, Netflix employs AI and machine learning to enhance user recommendations. With over 260 million subscribers, Netflix leads the streaming market. The company's earnings-per-share (EPS) growth is estimated at roughly 40% year over year. Trading at nearly $700, Netflix’s stock could benefit from a split, making it more accessible to a broader range of investors.

Please note, we are not financial analysts and this article is not intended as financial advice. Always consult with your financial advisor before making any stock moves.