In 2025, growth-oriented equities have largely thrived. Leading the pack, ASML has returned roughly 54%, AppLovin has surged 125%, and Tesla has gained approximately 20%. These substantial share price advances have elevated the stocks to levels where a stock split could be strategically beneficial in 2026. An examination of each company sheds light on why they may opt for such corporate actions soon.
ASML: Semiconductor Equipment Leader Poised for Growth and Split
ASML Holding stands as a pivotal player within semiconductor manufacturing due to its exclusive production of extreme ultraviolet (EUV) lithography machines. These highly specialized tools are critical for imprinting intricate chip designs on silicon wafers, supporting the fabrication of cutting-edge semiconductor devices. The rapidly expanding artificial intelligence sector is a significant demand driver for ASML’s EUV technology.
Despite occasional volatility and geopolitical complexities, notably the restrictions tied to U.S.-China relations impacting access to ASML's equipment, the company currently benefits from clearer outlooks. Management projects annual revenue growth between 7.6% and 13.3% through 2030. ASML trades at a price-to-earnings ratio around 36 based on full-year earnings estimates, reflecting optimism about over 22% annual earnings growth in the coming three to five years.
It has been over ten years since ASML’s previous stock split, a period in which the stock price has surged dramatically, now exceeding $1,000 per share. Given this valuation milestone and growth forecast, ASML appears well-positioned for a potential stock split in 2026 to improve share accessibility.
AppLovin: Rapid Expansion in Mobile Ad Tech Suggests Split Readiness
AppLovin operates within the vast mobile application ecosystem, providing developers of mobile games and apps with advertising technology that facilitates user targeting, acquisition, and monetization. As smartphones and app usage proliferate globally, AppLovin taps into a growing market segment. Although it was a recent addition to public markets in 2021, its shares have climbed by approximately 1,000% over its lifespan.
Recent financials illustrate AppLovin’s accelerating momentum, with revenue jumping 68% to $1.4 billion in the latest quarter. The market values the stock at about 78 times estimated full-year earnings, indicating high growth expectations. Industry estimations suggest that the mobile ad-tech sector could approach a valuation of $1 trillion by 2030.
Currently trading above $700 per share, AppLovin’s price level and robust growth metrics make it a prime candidate for its inaugural stock split, likely facilitating broader investor accessibility and enhanced liquidity.
Tesla: Distinguished Electric Vehicle Maker Eyes Next Growth Chapter
Tesla continues to be a highly watched and debated stock. Its shares hover near all-time highs even as the company's core electric vehicle sales slow down. A major factor fueling investor enthusiasm is Tesla’s venture into humanoid robotics with the Tesla Optimus project. This initiative targets a nascent market that experts speculate could grow into a multi-trillion-dollar industry potentially valued near $5 trillion by mid-century.
Despite current challenges such as a deceleration in vehicle sales and an elevated price-to-earnings ratio estimated at 300 times projected full-year earnings, investor faith in Tesla as a transformative growth story remains firm. The firm’s history includes multiple stock splits as shares reached higher price brackets. Tesla presently trades near $500 per share, a valuation level consistent with past precedents for initiating stock splits, making it likely that another split could materialize in 2026.
Conclusion
The upward trajectory of ASML, AppLovin, and Tesla share prices throughout 2025 has brought them to thresholds typically associated with stock splits. Each company operates in high-growth sectors with promising futures: semiconductor equipment manufacturing, mobile advertising technology, and electric vehicles coupled with robotics innovation, respectively. Stock splits in 2026 would not alter their market capitalizations but could promote greater trading flexibility and accessibility for investors.
Key Points
- Stock splits reduce individual share prices without changing company valuations, often triggered by share price appreciation during strong market conditions.
- ASML’s critical EUV lithography systems, benefiting from AI demand, support its projected revenue growth between 7.6% and 13.3% annually through 2030.
- AppLovin's revenue growth and valuation reflect substantial opportunity in mobile ad-tech, supporting its attractiveness for a potential inaugural stock split.
- Tesla's diversification into humanoid robotics offers new growth prospects despite slowing vehicle sales, with share prices suggesting another split could be probable.
Risks and Uncertainties
- Geopolitical tensions, particularly involving U.S.-China relations, have previously affected ASML’s equipment exports and could pose future challenges.
- AppLovin's valuation relies on continued rapid growth in mobile ad technology, which faces competitive and market risks that could impact sustainability.
- Tesla's current elevated valuation and slowing core business growth present potential valuation risks if new ventures fail to meet expectations.
Disclosure
This analysis is based on current market data and company guidance as of 2025. It does not provide investment advice and investors should conduct their own research before making investment decisions.