2 AI Giants Up 677% and 797% Over the Last Decade to Buy Now
Stock splits often follow a strong surge in a company’s share price. While they don’t alter the underlying fundamentals of the business, they signal management’s confidence in continued growth. This optimism frequently attracts investors, who buy shares both before and after the split. However, the real opportunity lies in focusing on companies performing so well that their stock prices climb to levels where a split becomes a logical next step. Whether or not a split occurs, such businesses can deliver substantial returns to shareholders. And if a split does happen, it can add momentum to the stock, potentially making it a standout performer.
Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) are two such companies. Over the past decade, their share prices have skyrocketed—Meta up 677%, Microsoft up 797%. Despite these gains, neither has split its shares, leaving their stock prices in the mid-three figures. Given their strong outlooks and valuations, a stock split could be in the cards for both in 2025.
Meta has undergone a remarkable transformation since 2015, when it was still known as Facebook. Today, it’s a leader in artificial intelligence (AI), having invested billions in the technology. While its ventures into virtual and augmented reality haven’t yet driven significant growth, AI has been a game-changer for its advertising business. Better algorithms have boosted user engagement, while advancements in generative AI have streamlined ad creation and targeting. Meta’s Llama large language model has opened doors for more sophisticated ad tools, allowing marketers to test multiple ad iterations effortlessly.
Meta’s investments are substantial, with capital expenditures projected between $38 billion and $40 billion for 2024, and even higher spending expected in 2025. This spending has paid off, with revenue up 22.5% through the first nine months of 2024, driving a 66% increase in earnings per share. Despite this growth, the stock’s forward P/E ratio of 23.4 remains reasonable, and with shares trading around $600, a split could be on the horizon.
Microsoft, meanwhile, has evolved from a personal computing giant to a leader in AI. Its $10 billion investment in OpenAI in early 2023 positioned its Azure cloud division as a frontrunner in AI-driven cloud services. Azure’s revenue growth accelerated to 33% in the first quarter of fiscal 2025, with management predicting even faster growth later in the year. Microsoft’s capital investments in AI-enabled data centers will surge to $80 billion in fiscal 2025, up from $55.7 billion the previous year.
The company’s enterprise software business remains a cash cow, bolstered by its AI-powered Copilot tools. These tools, which enhance worker efficiency and accuracy, are gaining rapid adoption across Microsoft’s platforms. With AI integration driving growth in both cloud and enterprise software, analysts expect accelerating revenue and earnings for Microsoft in the coming years. The stock currently trades at 31 times fiscal 2025 earnings estimates, a premium justified by its strong free cash flow and investment opportunities. With shares above $400, a split in 2025 seems plausible.
For investors, these companies represent not only the potential for stock splits but also the power of sustained innovation and strategic investment in AI. Whether or not splits materialize, their growth trajectories make them compelling additions to any portfolio.
stock splits serve as a compelling signal of a company’s robust performance and management’s confidence in future growth. While they do not alter the intrinsic value of the business, they often attract investor attention and can inject momentum into a stock. However, the true possibility lies in identifying companies like Meta Platforms and Microsoft—businesses that have demonstrated exceptional growth, resilience, and innovation, driving their share prices to levels that make stock splits a logical consideration.
Both Meta and Microsoft have delivered extraordinary returns to shareholders over the past decade, solidifying their positions as industry leaders. With their strong fundamentals, promising outlooks, and valuations that suggest continued growth, a potential stock split in 2025 could further amplify their appeal to a broader investor base. Whether or not a split materializes, these companies exemplify the kind of long-term investments that can deliver ample value.Investors would be wise to focus on the underlying strength and strategic vision of such businesses, as these are the true drivers of lasting success in the stock market.
stock splits serve as a noteworthy indicator of a company’s robust performance and management’s confidence in its future growth trajectory. While they do not change a company’s intrinsic value, they often act as a catalyst, attracting investor interest and potentially propelling stock momentum. The cases of Meta Platforms and Microsoft underscore this dynamic. Both companies have delivered remarkable returns over the past decade, driven by relentless innovation and strategic investments in transformative technologies like artificial intelligence.Despite their soaring share prices, neither has opted for a stock split yet, but given their strong fundamentals and optimistic outlooks, such a move in 2025 could further enhance their appeal to a broader investor base.
For investors, the key takeaway is to focus on businesses that demonstrate sustained growth and innovation—qualities that make stock splits a logical next step.Whether or not a split occurs, companies like Meta and Microsoft, with their leadership in AI and cloud computing, are well-positioned to deliver substantial long-term value. By prioritizing fundamentally strong companies, investors can capitalize on both the potential for stock splits and the enduring growth stories that drive them.