The Wait Is Over: 2 Historic Artificial Intelligence (AI) Stock Splits Were Just Announced
These industry titans are conducting their first-ever forward stock splits.
Two historic artificial intelligence (AI) stock splits were announced within eight days of each other, marking a significant shift in the AI sector. Meta Platforms (META +1.44%) and Sandisk (SNDK -7.91%) are set to become the first companies in the "Magnificent Seven" to undertake forward stock splits.
Meta Platforms, led by Mark Zuckerberg, has been the hottest trend on Wall Street in recent decades. Although the company generates the majority of its revenue from advertising on its family apps, excitement is growing due to its AI ambitions. Meta has integrated generative AI into its ad platforms to create personalized static and video messages, improving click-through rates. The company's strong profitability and the integration of AI are driving investor enthusiasm.
Meanwhile, NAND flash storage specialist Sandisk, spun off from Western Digital in February 2025, has declared its first stock split since its public debut. With shares soaring more than 6,000% since its listing, Sandisk's board of directors approved an aggressive 8-for-1 forward split. The company adopted this split to make its shares more accessible to retail investors and employees, considering the overwhelming demand for memory and storage solutions in AI-accelerated data centers.
Sandisk's gross margin has reached an astounding 85%, with projected earnings per share expected to jump from less than $10 to nearly $228 over the next 14 months. However, investors should be cautious, as history shows that memory and storage products are often cyclical, with premium pricing power rarely being sustainable.
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