Savvy investors often see stock splits as indirect signals of high-quality businesses, as they typically occur after significant increases in share prices—a phenomenon rarely linked to underperforming companies. Recently, several artificial intelligence firms undertook stock splits to adjust their inflated share prices: - **Arista Networks**: 324% growth in two years; 4-for-1 split in December 2024. - **Broadcom**: 318% growth; 10-for-1 split in July 2024. - **Nvidia**: 640% growth; 10-for-1 split in June 2024. - **Super Micro Computer**: 325% growth; 10-for-1 split in October 2024. Additionally, Meta Platforms saw a 350% increase, and Salesforce experienced a 115% rise over the same period, making them potential candidates for splits in 2025. Analysts are optimistic about both companies, with Barton Crockett from Rosenblatt projecting Meta's share price to reach $811, implying a 25% increase, and Brad Sills from Bank of America aiming for Salesforce to reach $440, suggesting a 32% upside. ### 1. Meta Platforms Meta controls four of the world’s seven leading social media platforms, enabling it to leverage vast amounts of data for targeted advertising. It is the second-largest ad tech firm globally, expected to continue growing its market share until 2026. For Q3, Meta reported a 19% revenue increase to $40 billion and a 37% rise in net income to $6. 03 per share, despite heavy investments in AI and Reality Labs. CEO Mark Zuckerberg highlighted that AI initiatives enhanced user engagement on Facebook and Instagram. Furthermore, Reality Labs announced Orion, its first fully holographic augmented reality glasses.

Analysts forecast a 15% annual earnings increase through 2025, making the current valuation of 30 times earnings seem reasonable for long-term investors. ### 2. Salesforce Salesforce is a leading CRM software provider, holding 22% of the market share. It reported an 8% revenue increase to $9. 4 billion in Q3 of fiscal 2025, with a 14% rise in non-GAAP net income to $2. 41 per share. The company introduced Agentforce, an AI-powered platform providing autonomous digital labor. CEO Mark Benioff claims it offers unmatched AI solutions for enterprises. Wall Street anticipates a 12% annual earnings growth for Salesforce through fiscal 2026, presenting a 34 times adjusted earnings valuation that may seem high but could be underestimated. Salesforce has consistently exceeded earnings forecasts, suggesting potential for future growth. Patient investors may find value, but starting with a small position is advisable due to the high valuation.