3 Artificial Intelligence (AI) Stocks That Look Like They’re Ready to Split

In recent months, many technology companies related to artificial intelligence (AI) have announced stock splitIn fact, of the five potential AI stock splits I discussed in May, four have already executed or have announced impending splits.

Remember, a stock split does not change the intrinsic value of a stock one iota. But it can open the stock up to more retail investors and/or employees who would like to buy shares for lower amounts and who do not have access to buying fractional shares.

With stock split fever in the air and the Nasdaq After recovering from their late July slump, more AI-related stocks are seeing their prices soar. With a high share price and the likelihood of more AI-powered growth ahead, these three companies are the next candidates for a stock split in the near to medium term.

Meta-platforms

You might not think about it. Meta-platforms (NASDAQ:META) as an AI leader, but don’t underestimate CEO Mark Zuckerberg and his leadership team: Meta actually has the potential to beat current market leaders like OpenAI and others at their own game.

Meta obviously has the financial resources to invest in cutting-edge AI infrastructure, but its competitive advantage may lie in Zuckerberg’s decision to Open-source the company’s Llama model code. Open source essentially means giving away the code for free, but it allows outside developers to optimize and improve the underlying model. The move has the potential to increase Llama’s innovation faster than that of closed-source competitors like OpenAI or models from other Magnificent Seven initiatives.

Meta can afford this because selling direct access to its AI language model is not its core business. Instead, its major social media platforms all benefit from the increased power of AI, which has proven to increase user engagement and better target ads, generating more revenue per ad.

This is what happened in the second quarter. Despite its already enormous size, Meta managed to increase its number of daily active employees by 7%, while increasing its revenue by 22% and its operating income by 58%.

Of course, one day Llama should become a revenue generator, as Zuckerberg has identified potential future use cases, such as agents automating many tasks for creators, inserting ads into AI interactions, or charging directly for higher and more advanced levels of AI modeling and computation. But for now, Meta can afford to take its time and build out these services.

Meta is currently the only Magnificent Seven company that has never had a stock split. But with a stock price already above $525 per share and a very reasonable valuation of 26 times earnings, it’s not a stretch to think that a stock split could happen in the near future. After all, this year has already been a first for Meta, as the company launched a dividend for the first time in February.

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KLA Company

KLA Company (NASDAQ: KLAC) saw its stock soar in…