In recent years, stock splits—where companies divide existing shares into multiple shares while keeping market capitalization constant—have gained popularity on Wall Street with firms like Amazon, Nvidia, and Tesla engaging in them. Although stock splits do not alter a company’s valuation, they can attract more retail investors by lowering share prices, potentially driving demand. The artificial intelligence (AI) sector, noted for rising stock prices, has several candidates for potential stock splits. Here are four companies worth examining: 1. **AppLovin**: AppLovin (APP) provides marketing and monetization tools for mobile app developers and employs AI to enhance ad revenue. Trading at $332 per share, the company has seen its stock rise more than 400% since its 2021 IPO. In Q3 2024, it reported $1. 2 billion in revenue and a staggering $545 billion in free cash flow, leading to an increase in its share repurchase program. 2. **ASML Holding**: ASML (ASML) produces advanced photolithography machines vital for microchip manufacturing. Its stock, priced at $750, has undergone four stock splits since its 1997 IPO, with the most recent being a reverse split in 2007.

In Q3 2024, ASML achieved $8. 2 billion in revenue and $2. 3 billion in net income, and it maintains a solid balance sheet with consistent dividends since 2013. 3. **Meta Platforms**: Meta (META), which rebranded from Facebook, has seen its stock increase over 60% to $615 per share since its 2012 IPO. The company, leveraging AI to enhance ad campaigns, reported $40. 6 billion in revenue and $15. 7 billion in net income in its most recent quarter. Meta recently initiated a quarterly dividend and has reduced its share count by 7. 3% over three years as it continues to invest heavily in AI. 4. **Microsoft**: Microsoft (MSFT) has made significant investments in AI, spending $49. 5 billion on capital expenditures and investing $13. 8 billion in OpenAI since 2019. The company has split its stock nine times since 1986, with the latest being in 2003. In its latest quarter, Microsoft announced $65. 6 billion in revenue and $24. 7 billion in net income, supported by a robust balance sheet and consistent dividend increases. While these companies have not announced a stock split, their strong performance driven by AI makes them appealing for long-term investors. Ultimately, investment decisions should focus on a company's financial health and growth potential rather than the mere prospect of a stock split.