3 Stock-Split Stocks to Buy Before They Soar as Much as 243%, According to Select Wall Street Analysts

The popularity of stock splits has seen a resurgence in recent years. While the procedure was common throughout the 1990s, it had faded into near obscurity before enjoying a renaissance over the past decade. Companies will normally embark on a stock split after years of strong operational and financial results have driven a surging stock price. The prospect of a stock split is generally a reason for investors to take a fresh look at the company in question -- and with good reason.

The strong business performance that ultimately led to the stock split in the first place tends to continue, fueling further gains. Research shows that companies that initiated a stock split normally return 25%, on average, in the year following the announcement, compared with average increases of 12% for the S&P 500, according to data compiled by Bank of America analyst Jared Woodard.

Here are three stock-split stocks that still have a long runway ahead, according to select Wall Street analysts.

Nvidia: Implied upside 82%

The first stock-split stock with loads of upside potential is Nvidia (NASDAQ: NVDA). The company has become the de facto flag bearer for recent advances in artificial intelligence (AI) thanks to its pioneering work with graphics processing units (GPUs).

It turns out that the same chips that revolutionized the gaming industry work equally well at speeding data through the ether, making them the first choice among cloud-computing and data-center operators. It also accelerates the processing of AI models, which helped Nvidia become the gold standard for generative AI.

For its fiscal 2025 second quarter (ended July 28), Nvidia generated record-quarterly revenue that soared 122% year over year to $30 billion, delivering diluted earnings per share (EPS) that surged 168% to $0.67. The headliner was a blockbuster performance from the company's data-center segment -- which includes AI chips -- as sales soared to $26.3 billion, rising 154%.

The rise of AI has fueled a blistering increase in Nvidia's stock price, which has gained 716% since the start of 2023 and led to its viral 10-for-1 stock split in June. The stock has experienced a lull in recent months as investors questioned the staying power of one of the market's best performers, but many on Wall Street believe the adoption of AI is just getting started, a trend that favors Nvidia.

In an interview on CNBC earlier this month, Niles Investment Management founder Dan Niles said he "firmly believes" that over the next several years, Nvidia's revenue and stock price will double from current levels, driven higher by demand for AI. That suggests potential gains for investors of 82% compared to Wednesday's closing price.