2 Stock-Split Stocks to Buy Before 2025

Companies that split their stocks are usually experiencing phenomenal growth that has sent their share price soaring. It's not uncommon to see a fast-growing company issue multiple stock splits over several years. For example, leading chip supplier Nvidia (NASDAQ: NVDA) has split its stock six times in the last 25 years, with two since 2021.

The most common type of split is a forward stock split in which the goal of the company is to make its share price more affordable for investors. Keep in mind, a stock split gives you more shares, but the share price is also reduced so that the value of your investment remains the same after the split.

Stock splits alone are not a good reason to invest in a company. It still comes down to looking at a company's growth and future opportunities. If the stock is trading at a reasonable price relative to that growth, you've got a winner on your hands. Here are two growth stocks that recently issued a 10-for-1 split you can buy today with less than $200.

1. Nvidia

Nvidia has been one of the best-performing stocks over the last 10 years. The shares are up 24,000% since 2014. The company has split its stock twice in the last five years: a 4-for-1 split in 2021 followed by a 10-for-1 split in June of this year, bringing its share price to a more affordable $118.

The stock has been choppy over the last month as investors focus on near-term hurdles to growth. Nvidia is launching its Blackwell GPU architecture later than Wall Street expected. Nvidia is also dealing with export restrictions and increasing competition in China, although its China business grew sequentially last quarter.

Some of Nvidia's largest customers in the U.S. are making their own chips for artificial intelligence (AI) workloads, including Amazon Web Services (AWS). There is growing demand for alternatives since Nvidia's graphics processing units (GPUs) have been in short supply and command high selling prices.

Despite these risks, Nvidia's revenue grew 122% year over year in the fiscal second quarter. There is currently no replacement for the general-purpose computing power of Nvidia's GPUs. This is why Amazon and other cloud service providers are expected to adopt Blackwell next year, which can run large language models (LLMs) significantly faster and at lower cost than previous-generation chips.

Nvidia expects fiscal Q3 revenue to be up approximately 79% over the year-ago quarter. Management sees the enterprise AI wave gaining momentum across various industries, and this should lead to strong demand for Blackwell starting in fiscal Q4.