Artificial intelligence has quietly become one of the most transformative forces in tech, driving innovations in cloud computing, automation, and even creative industries. Amid this explosion of AI-driven growth, two powerhouse companies—Meta Platforms (META) and Microsoft (MSFT)—are rumored to be preparing for stock splits in 2025.
With Meta trading around $600 per share and Microsoft at $420, retail investors often feel priced out of owning whole shares. A stock split could change that, making these in-demand AI stocks far more accessible. But how does this strategy work, and why is now the right time for Meta and Microsoft to consider it?
The Power of Stock Splits in Big Tech
Stock splits are purely cosmetic—they don’t directly increase a company’s market capitalization, nor do they alter the intrinsic value of a shareholder’s investment. Instead, the primary goal is to lower the price per share by increasing the number of outstanding shares.
For example, if Meta executes a 3-for-1 split, an investor who owns one share at $600 would end up with three shares valued at $200 each. The total investment remains the same, but the lower price per share can attract more retail investors.
This strategy has historically worked well for companies in high-growth sectors. In June 2024, Nvidia (NVDA) executed a 10-for-1 stock split, reducing its share price from $1,200 to around $120. The result? A surge in trading volume and heightened retail investor interest, as reported by AInvest.
Why Meta and Microsoft Might Split in 2025
While Meta and Microsoft haven’t officially announced stock splits, their recent stock surges and historical precedent suggest it’s a strong possibility.
Meta Platforms (META): Riding the AI and Metaverse Wave
Meta is leveraging AI across its platforms—enhancing ad targeting, personalizing user experiences, and advancing its metaverse ambitions. The company’s AI-powered Llama language models are giving OpenAI competition, and its pivot to AI-driven ads has boosted revenue substantially, according to Investopedia.
With its current stock price hovering around $600, Meta is at its highest valuation since its 2012 IPO. A stock split could encourage smaller investors to buy in, making the company’s AI advancements more financially accessible.
Microsoft (MSFT): The AI Cloud Giant
Microsoft is arguably the biggest AI player in enterprise software. From its Azure Cloud AI tools to its 67% stake in OpenAI, it has positioned itself as an AI superpower. These innovations are fueling growth, making Microsoft’s $420 share price a strong candidate for a stock split.
Interestingly, Microsoft has executed nine stock splits in its history, with the last one in 2003, as noted by 24/7 Wall St.. Given that it’s now one of the most expensive stocks in the Dow Jones Industrial Average, a split would make sense—not just for accessibility but also for maintaining its influence in the index.
Stock Splits in the Broader AI Market
Meta and Microsoft’s potential stock splits are part of a growing trend in AI and tech stocks. In addition to Nvidia’s recent split, other companies have considered similar moves in response to high valuations.
- Alphabet (GOOGL) executed a 20-for-1 split in 2022, following concerns about its high trading price. This move helped increase liquidity and attracted new retail investors.
- Apple (AAPL) and Tesla (TSLA) both split their stocks in 2020, with Tesla executing a 5-for-1 split that preceded a significant rally in its stock value.
The key takeaway? Stock splits don’t alter fundamental business strength, but they do increase psychological and financial accessibility for investors.
How AI Stock Splits Could Impact You
If Meta and Microsoft follow through with stock splits in 2025, what does it mean for your portfolio?
- Lower Barriers to Entry – If you’ve been hesitant to invest in these AI juggernauts because of high share prices, a split could offer a more affordable entry point.
- Increased Trading Liquidity – Lower per-share pricing often boosts trading volume, potentially making stocks less volatile.
- Market Perception and Growth Potential – Historically, stock splits have preceded strong rallies in tech stocks, as seen with Apple, Nvidia, and Tesla.
That said, a stock split alone doesn’t make a stock a better investment. Investors should still evaluate fundamentals like AI innovation, profit margins, and long-term scalability before buying in.
Looking Ahead: The Future of AI Accessibility in Markets
AI’s rapid rise has created a market where many of the most valuable companies are trading at historically high prices. By considering stock splits, Meta and Microsoft are not just making shares more accessible—they’re inviting a new wave of investors into AI’s future.
As analysts at 24/7 Wall St. pointed out, stock splits
“often signal confidence from management about continued growth potential.”
While there’s no official confirmation yet from Meta or Microsoft, history suggests that these companies could announce splits within the next year.
For investors, the takeaway is clear: AI stocks remain a dominant force in tech, and potential stock splits could open up new opportunities to get in at a more affordable price. Whether you’re an AI bull or cautiously observing, these possible splits make Meta and Microsoft two companies worth watching closely in 2025.
Final Thoughts: Why AI Stock Splits Matter Now
As AI continues to revolutionize industries, the potential stock splits of Meta and Microsoft signal an effort to bring more investors into the fold. While stock splits don’t change a company’s fundamentals, they do lower the price per share—making it easier for retail investors to own shares of these AI giants. Given Nvidia’s recent surge in retail demand post-split, a similar move from Meta and Microsoft in 2025 could unlock new market dynamics and fuel greater public participation in AI’s financial future.
For tech investors, this is a pivotal moment. AI stocks are shaping the future of software, media, and enterprise tools, and accessibility matters more than ever. According to The Motley Fool, stock splits are often
“a signal of strength and confidence from companies experiencing sustained growth.”
If Meta and Microsoft follow through, this could mark one of the most exciting AI investment opportunities in years. What do you think? Follow AlgorithmicPulse for the latest on AI markets, share your perspective in the comments, and consider how these potential splits could fit into your investment strategy.
