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2 AI Stocks Primed for Stock Splits – Buy Now Before They Skyrocket 111% (Wall Street’s Best-Kept Secret)

2 AI Stocks Primed for Stock Splits – Buy Now Before They Skyrocket 111% (Wall Street’s Best-Kept Secret)

Author:
foolstock
Published:
2025-08-14 19:55:00
5
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Wall Street’s whispering about two AI giants on the verge of stock splits—and the upside could be ludicrous. Here’s the playbook before the herd piles in.


The Split Effect: Why These AI Stocks Could Pop

Stock splits don’t change fundamentals, but they do one thing flawlessly: lure retail investors like moths to a blockchain meme coin. These two AI leaders—already crushing their sectors—are teed up for a momentum surge.


#1: The AI Infrastructure Juggernaut

Forget ChatGPT—this company’s chips power the entire AI arms race. Supply can’t meet demand, and a split would make its sky-high share price *look* accessible (even if your portfolio isn’t).


#2: The Enterprise AI Sleeper

While everyone obsesses over chatbots, this firm’s automating Fortune 500 back offices. Boring? Maybe. Profitable? Absolutely—and a split could trigger the FOMO rally of the decade.


The Fine Print (Because Wall Street Loves Asterisks)

Analysts’ 111% upside targets hinge on AI adoption *not* being hype (spoiler: it’s 50% hype). But splits? Those are pure psychological rocket fuel—and in this market, perception trumps reality every time.

A blue share certificate.

Image source: Getty Images.

AppLovin: 75% implied upside

AppLovin develops ad tech software that has traditionally aimed to help developers market and monetize applications through mobile and connected TV campaigns. But the company has more recently expanded into e-commerce advertising. Its platform features an artificial intelligence (AI) engine called Axon, which uses sophisticated machine learning models to match advertiser demand with publisher supply.

AppLovin reported very strong financial results in the second quarter. Revenue increased 77% to $1.2 billion, and generally accepted accounting principles (GAAP) net income increased 169% to $2.39 per diluted share. The company also completed the sale of its mobile applications businesses, meaning it can focus solely on its booming advertising business in the future. Management anticipates 59% advertising revenue growth in the third quarter.

Importantly, management also highlighted a few potential catalysts on the horizon. The company currently sources most ad inventory from mobile games but in the NEAR future will add other supply sources like social media, music, news, sports, and websites. Additionally, it has traditionally provided managed advertising services but will open its self-service platform on referral basis in October, with a global launch to follow in the first half of 2026.

Wall Street expects AppLovin's earnings to increase at 48% annually through 2026. That makes the current valuation of 61 times earnings look reasonable, especially when the company beat the consensus earnings estimate by 23% in the last six quarters. Investors should feel comfortable buying a small position in this potential stock-split stock today.

HubSpot: 111% implied upside

HubSpot develops customer relationship management (CRM) software. Its platform comprises productivity applications for marketing, sales, service, and operations, as well as tools for content management and payments. The company focuses on mid-market businesses, defined as those with 2 to 2,000 employees.

HubSpot has embedded its platform with an AI engine called Breeze. It can summarize CRM records, draft emails, build webpages, generate marketing content, and provide customer support. Breeze can also analyze information and surface insights, and make recommendations that improve productivity of sales, marketing, and service teams.

HubSpot reported encouraging Q2 financial results that beat estimates on the top and bottom lines. Its customer count ROSE 18%, and the average subscription revenue per existing customer increased 1%. In turn, revenue increased 19% to $761 million, and non-GAAP net income rose 13% to $2.19 per diluted share. CEO Yamini Rangan mentioned strong adoption of AI features across the CRM platform as a key contributor.

Wall Street expects HubSpot's adjusted earnings to grow at 22% annually through 2026. That makes the current valuation of 50 times adjusted earnings look tolerable, especially when the company beat the consensus earnings estimate by an average of 6% over the last four quarters. Importantly, every analyst following HubSpot sees the stock as undervalued. The lowest target price is $593 per share, implying 39% upside from its current share price of $426. Investors should feel comfortable buying a small position today.

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