Stock splits have seen a resurgence in recent years, driven by bull markets and strong stock price gains.
Broadcom and AppLovin delivered stunning gains for investors, sparking speculation they might conduct stock splits.
Both are selling at attractive valuations.
10 stocks we like better than Broadcom ›
Stock splits were common in the late 1990s, but the practice fell out of favor and almost disappeared. In recent years, however, stock splits have seen a resurgence as a means of making popular and high-rising stocks accessible to the masses.
Additionally, the emergence of artificial intelligence (AI) and strong corporate performance have fueled a strong bull market that just turned three years old, pushing stock prices to highs not seen in years. Don’t take my word for it: Dow Jones Industrial Average(DJINDICES: ^DJI), S&P 500 Index(SNPINDEX:^GSPC)and Nasdaq Composite Index(NASDAQ: ^IXIC) have all Record highs have been hit in recent months, and there may be more to come.
Ryan Detrick, chief market strategist at financial services firm Carson Group, analyzed data that suggests the bull market continues longer The continuous rise lasted for more than three years, with an average of eight years, and even shortest Lasts five years.
With that as a backdrop, let’s take a look at two unstoppable stocks that Wall Street believes have soared over the past two years but are still worth buying now.
Image source: Getty Images.
The AI revolution continues to grow, but its reach is also beginning to expand. Graphics processing units (GPUs) were the early chips of choice for powering the large language models (LLMs) that underpin artificial intelligence. However, as the use of AI continues to evolve, so do user needs. For example, while GPUs are unrivaled in speed and flexibility, this comes at the cost of high energy consumption.
that’s there Broadcom(NASDAQ:AVGO) The company offers application-specific integrated circuits (ASICs) that are touted as viable alternatives to power-hungry GPUs. ASICs are specialized semiconductors that can be customized to be efficient at performing specific tasks (hence the name) and therefore more energy efficient for these use cases.
Broadcom recently struck a multibillion-dollar deal with ChatGPT creator OpenAI to supply 10 gigawatts of ASICs over the next four years. This may just be the beginning, as the company is “deeply engaged” with other hyperscalers to provide them with these specialized chips. All told, Broadcom believes the AI opportunity for its existing customers will climb to $60 billion to $90 billion by 2027, and new agreements could push that scope even further.
Broadcom keeps its customer list secret, but is believed to supply specialized processors to some of the biggest names in technology, including letterof Google, meta platformand TikTok parent company ByteDance.
Of the 47 analysts with opinions so far in December, 94% have a Buy or Strong Buy rating on the company, and without any Recommended for sale.
At over $400 a share, Broadcom may be ripe for a stock split, especially if it continues to rise at its current pace.
At 32 times next year’s expected earnings, Broadcom’s stock price may appear expensive. However, high-growth stocks struggle to be valued by the most commonly used valuation metrics. A more appropriate price-to-earnings (PEG) ratio is 0.43, with any number less than 1 indicating that the stock is undervalued.
There was a time when advertising in software and apps was fraught with uncertainty, as marketers couldn’t be sure whether their investment was getting value for money. Apply love (NASDAQ:APP) Be there to answer the phone. The ad tech company offers a suite of tools to help app developers market and monetize their apps. AppLovin is expanding its offerings to create a new generation of solutions designed specifically for e-commerce platforms.
The company offers a variety of cutting-edge tools that lead the industry. Its Axon self-service advertising platform enables users to automate and manage their creative campaigns, while AppLovin’s Max supply-side platform helps connect publishers and advertisers in real time. A sign of the company’s success is its recent inclusion in the S&P 500 Index, and its stock price has soared more than 1,700% in the past two years.
This combination is reaping huge rewards and driving skyrocketing growth. Third-quarter revenue was US$1.4 billion, a year-on-year increase of 68%, and diluted earnings per share (EPS) was US$2.47, a year-on-year increase of 96%. Net revenue per install increased 75%, driving performance. Perhaps more telling is the $1.05 billion in operating cash flow and $1.05 billion in free cash flow that AppLovin generated during the quarter.
Wall Street is clearly bullish on the company’s future prospects. Of the 27 analysts with opinions so far in December, 81% rate the company a buy or strong buy, with just one analyst maintaining a sell recommendation.
AppLovin stock, currently selling for over $700 per share, is ripe for a split, especially given the company’s continued mid-double-digit growth.
Like Broadcom, AppLovin defies more common valuation metrics, selling for more than 50 times next year’s expected earnings. However, its PEG ratio of 0.63 suggests the stock is attractively priced for a company growing revenue and profits so quickly.
Before buying Broadcom stock, consider the following factors:
this Motley Fool Stock Advisor The analytics team has just identified what they believe is 10 Best Stocks Investors can buy now…and Broadcom isn’t one of them. The 10 stocks selected could generate huge returns in the coming years.
consider when Netflix This list was created on December 17, 2004… If you invested $1,000 when we recommended, You will have $513,353!* or when NVIDIA This list was created on April 15, 2005… If you invested $1,000 when we recommended, You will have $1,072,908!*
Now, it’s worth noting stock advisor Total average return is 965% — outperformed the market compared to the S&P 500’s 193%. Don’t miss the latest top 10 list, available via stock advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*As of December 15, 2025 Stock Advisor Returns
Danny Vena, CPA, has worked at Alphabet, Broadcom and Meta Platform. The Motley Fool has positions and recommendations on Alphabet and Meta platforms. “Motley Fool” recommends Broadcom. The Motley Fool has a disclosure policy.
Possible stock splits in 2026: Two unstoppable stocks with gains of 337% and 1,780% in 2 years, worth buying now, The Wall Street reports
