In 2025, several companies saw remarkable success that places them in a strong position for potential stock splits in the coming year. Historically, stock splits are more common during thriving market conditions when share prices are elevated. A stock split can be likened to slicing a pie into smaller, equal parts: while the overall size of the pie remains unchanged, the number of slices increases, causing each share to represent a smaller portion. Although stock splits lower the trading price of shares, they do not impact the company’s overall valuation or fundamental operations. Investors often view stock splits favorably, as they typically follow periods of strong stock performance and enhance liquidity by making shares more accessible for trading.
Growth stocks, in particular, have experienced substantial gains throughout the year. Notable performers include ASML, AppLovin, and Tesla, with stock price increases of 54%, 125%, and 20% respectively.
ASML
With a current price of $1,072.75, ASML’s stock has shown an increase of 0.68% recently. The company, which holds a market cap of $416 billion, plays a pivotal role in the semiconductor industry by producing extreme ultraviolet (EUV) lithography machines essential for crafting state-of-the-art semiconductor chipsets. The surge in demand for ASML’s EUV systems has been driven by the expanding artificial intelligence sector. Although the stock has encountered fluctuations and some geopolitical concerns, its management forecasts a robust annualized revenue growth of between 7.6% and 13.3% through 2030. With analysts projecting a 22% annual growth in earnings and the stock having not split in over a decade, many believe ASML is overdue for a stock split.
AppLovin
Currently priced at $713.86, AppLovin has seen a drop of 1.88%. With a market cap of $241 billion, the company’s operations focus on the booming market of mobile applications, providing developers with tools for user acquisition and monetization. Having gone public during a market bubble in 2021, AppLovin has managed to achieve an impressive 1,000% increase in stock price since its inception. Recently, the company reported a revenue spike of 68% to $1.4 billion in the last quarter. Though its stock trades at a high valuation of 78 times full-year earnings estimates, it has substantial potential for further growth, particularly as the mobile ad-tech market is expected to approach $1 trillion by 2030. The high trading price also positions AppLovin as a candidate for its first stock split.
Tesla
Tesla, with a current share price of $475.19, has experienced a recent decline of 2.10%. The electric vehicle manufacturer commands a market cap of $1.6 trillion. Despite experiencing a slowdown in vehicle sales, Tesla’s stock remains near all-time highs, primarily due to CEO Elon Musk’s focus on developing humanoid robotics, a venture that could represent a multi-trillion-dollar opportunity by 2050. However, Tesla’s price-to-earnings ratio currently sits at an astonishing 300 times full-year earnings estimates. Though this high valuation may be daunting for some investors, Tesla’s history as a “story stock”—dependent largely on Musk’s vision—has yielded impressive returns for its shareholders. Given that the shares are currently priced at nearly $500, another stock split could be on the horizon.
As these companies continue to thrive, stock splits may be an important consideration for investors eager to capitalize on their impressive performance in a buoyant market.
