Why Wall Street Is Betting on These Tech Giants for 2025's Next Major Stock Split Wave

The Overlooked Catalyst Driving Market Rallies Beyond AI Hype

While artificial intelligence dominates headlines, another powerful market dynamic has been quietly reshaping Wall Street valuations: the stock split phenomenon. Beyond algorithmic trading and generative AI breakthroughs, the mechanics of share price adjustments have emerged as a surprisingly influential catalyst for market momentum. Understanding which companies might make this move next could reveal overlooked investment opportunities.

When Share Price Becomes a Barrier for Everyday Investors

Stock splits represent a straightforward corporate action—dividing existing shares proportionally to adjust nominal pricing. While mathematically inconsequential to market capitalization or fundamental business value, investor psychology treats them as fundamentally different from reverse splits. The distinction matters: companies executing forward splits are typically viewed as thriving enterprises expanding accessibility to retail audiences, whereas reverse splits carry the stigma of distressed businesses avoiding delisting.

Three significant forward splits have already materialized in early 2025. Yet the market awaits what many consider the true blockbuster announcement. Within the Magnificent Seven—those seven mega-cap titans that have each surpassed trillion-dollar valuations—two candidates stand out as particularly primed.

The Case for Tech’s Highest-Priced Stocks

Consider the Magnificent Seven’s current positioning: Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla represent the portfolio’s largest holdings. However, not all are equally positioned for imminent splits.

Nvidia’s June 2024 10-for-1 division brought shares to approximately $182. Amazon and Alphabet’s 2022 splits (20-for-1 each) established share prices around $225 and $202 respectively. At these levels, fractional share restrictions no longer meaningfully constrain retail participation.

The equation changes dramatically for two members of this elite group.

Meta’s $800-Per-Share Reality Check

Meta Platforms presents perhaps the most compelling narrative for a 2025 split announcement. Trading near $800 per share, the social media behemoth remains the only Magnificent Seven member never to execute a stock split. This unprecedented pricing milestone, combined with outsized retail ownership exceeding 27% of outstanding shares, creates the fundamental conditions for board action.

Beyond nominal pricing, Meta’s competitive moat appears impenetrable. The company’s ecosystem—encompassing Facebook, WhatsApp, Instagram, Threads, and Messenger—attracted 3.48 billion daily active users in mid-2025. No social media competitor approaches these engagement figures, granting Meta extraordinary pricing leverage in digital advertising markets.

Artificial intelligence is amplifying this advantage. Generative AI tools enabling hyper-targeted ad delivery and improved click-through rates are driving double-digit ad revenue expansion. Meanwhile, Zuckerberg’s metaverse investments position the company as the primary gateway to immersive 3D virtual environments as adoption accelerates.

Crucially, Meta’s fortress balance sheet reinforces bullish momentum. The company accumulated over $47 billion in liquid assets by mid-2025, while generating approximately $99 billion in operating cash flow this fiscal year. This financial flexibility supports sustained capital returns and strategic investments simultaneously.

Microsoft’s Two-Decade Split Drought

Yet Microsoft may trigger even greater enthusiasm among waiting investors. Despite 22 years passing since its last split (February 2003), the software colossus maintains a storied history: nine forward splits since 1986 transformed a single IPO share into 288 modern equivalents.

Today’s reality mirrors Meta’s backdrop: share prices exceed $500, with over one-third held by retail investors. This combination essentially guarantees board consideration of the company’s first split in more than two decades.

Microsoft’s growth trajectory justifies expectations of further price appreciation. Azure’s ecosystem expansion through large language model capabilities generated a stunning 39% year-over-year sales increase during fiscal Q4. This cloud computing momentum sits alongside the enduring cash-generation capabilities of legacy Windows and Office divisions.

The company’s capital allocation strategy sweetens this picture considerably. Microsoft distributed more than $24 billion in dividends during fiscal 2025 while executing over $18 billion in share repurchases—among the most aggressive capital-return programs in publicly traded markets.

The Intersection of Valuation and Accessibility

Both Meta and Microsoft embody a singular truth: exceptional companies commanding premium valuations increasingly face market pressure to democratize share ownership through splits. As these stocks continue appreciating in response to structural AI-driven advantages, the case for nominal price reduction intensifies.

Investors monitoring 2025’s corporate governance calendar should watch closely for announcements from these two technology leaders. The stock split announcement itself may prove as significant as the artificial intelligence momentum it accompanies.