1 High Flying AI Stock That Could Split Its Stock in 2025

Even if the AI headlines take a backseat to new tariff developments, it’s important to remember that progress in AI waits for no one. The AI revolution is still moving ahead, whether or not investors opt to stay invested in the top tech names that have fallen so quickly out of favor. As the AI […] The post 1 High Flying AI Stock That Could Split Its Stock in 2025 appeared first on 24/7 Wall St..

Mar 7, 2025 - 14:45
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1 High Flying AI Stock That Could Split Its Stock in 2025

Even if the AI headlines take a backseat to new tariff developments, it’s important to remember that progress in AI waits for no one. The AI revolution is still moving ahead, whether or not investors opt to stay invested in the top tech names that have fallen so quickly out of favor.

Key Points

  • The EUV machine maker could be on the split radar again if shares can turn a corner.

  • A return to $1,100 per share may be enough for management to think about its first split in more than 25 years.

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As the AI boom turns into an agentic AI boom and automation opportunities come to light, perhaps it’s a bad time to be throwing in the towel on tech stocks over fears of tariff-driven stagflation.

Whether or not tariffs stick and haunt consumers with more inflation, the AI boom will likely outlast mounting headwinds caused by unorthodox fiscal policy. Whether it’s robotics, agents, or artificial general intelligence (AGI) that could prove the biggest ground-breaker in the coming decade, continuing to stick with theme seems like a prudent one, especially now that valuations are coming in.

With OpenAI reportedly poised to pull the curtain on a $20,000 per month PhD-level agent (or $10,000 per month for its coding agent), questions linger as to whether firms the added value will exceed the high price of admission. In any case, I think it’s time to warm up to the semiconductor plays again, especially the battered ones that are falling alongside the broad stock market.

A stock-split candidate that could make another run for $1,100

ASML (NASDAQ:ASML) was a former high-flyer as the semi rally blasted off in 2023 and 2024. For those unfamiliar with the Dutch firm, it’s a maker of EUV photolithography machines, a vital piece of semi-manufacturing equipment required to develop the latest and greatest chips. ASML has a vast moat (you could call it a virtual monopoly) surrounding its corner of the semi machinery scene.

And it’s why the stock deserves a premium multiple — perhaps a loftier one that the stock is currently commanding today at $714 and change, down more than 34% from its 2024 all-time high. It’s hard to believe, but ASML stock is trading at a four-year low.

And though there’s no stock split on the horizon, I consider the name to be one of my top split candidates come once the market-wide sell-off concludes and the tech trade readies for its next leg higher. Nearly a year ago, ASML shares eclipsed $1,100 per share, making a split seem just around the corner.

In my humble opinion, ASML stock is long overdue for a split, given its hefty share price. It’s also been around 25 years since the last forward split! I’m sure smaller retail investors would appreciate being able to get skin in the game of one of the most powerful AI plays in Europe at a more bite-sized price. Despite the latest bear market plunge, the stock still seems inaccessible (still going for over $700 per share) to a lot of these smaller investors who don’t have access to trading fractional shares.

ASML held in high regard by many big-name analysts

Though it’s hard to tell when the stock will return to a four-figure share price, I do think that the continued advancement of the AI boom bodes very well for ASML’s long-term future. Of course, DeepSeek and the rise of low-cost models could take away from AI chip demand over the medium term.

However, high-powered agents (think the one OpenAI plans to charge five figures for!) and powerful new large language models (think GPT-4.5) seem to paint a much prettier picture for high-performance AI chip demand and, in turn, demand for ASML’s machinery. Looking ahead, analysts remain upbeat on the semi equipment maker.

The Street-high price target of $1,100 is held by a very bright analyst in Sandeep Deshpande of JP Morgan (NYSE:JPM). Mr. Deshpande sees ASML stock making a return to new highs. And I do not doubt his call as the company looks to secure enough orders to help set a path to beat its 2025 expectations.

At the end of the day, ASML is a major pillar of the semiconductor scene. If shares do make a return to $1,100, perhaps hopes for a split will be raised.

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