Three Potential Stock Split Candidates for 2026: Where Growth Stocks Are Heading Next

Key Takeaways - Tesla’s shares hover near record highs as humanoid robotics gains investor attention. - ASML’s stock price has eclipsed the $1,000 mark, driven by artificial intelligence demands. - AppLovin has experienced explosive growth, making it ripe for its inaugural stock split. - Market cycles suggest elevated share prices often precede corporate actions like splits.

When equity markets perform strongly and valuations climb, companies frequently consider stock splits to improve accessibility for retail investors. Understanding what constitutes a stock split and why companies pursue them reveals important dynamics in growth investing.

A stock split essentially divides existing shares into a greater number of lower-priced shares, maintaining the company’s overall market capitalization while adjusting the per-share cost. This mechanism doesn’t alter business fundamentals or valuation metrics—it’s a mechanical adjustment that often signals management confidence following strong performance.

Market Performance Sets the Stage

The past year has delivered remarkable gains for several prominent growth equities. Tesla (NASDAQ: TSLA) has climbed approximately 20%, ASML (NASDAQ: ASML) has surged roughly 54%, and AppLovin (NASDAQ: APP) has soared by 125% through 2025. These three companies now trade at price points that historically precede corporate stock-split announcements.

Tesla: The Robotics Pivot

Tesla represents a fascinating case study in how narratives can drive equity performance independent of core business trends. While the company’s automotive sales have decelerated, Chief Executive Officer Elon Musk has positioned Tesla toward a transformative opportunity: humanoid robotics through the Tesla Optimus platform.

Industry researchers project this sector could expand into a multi-trillion-dollar market by 2050, with some estimates reaching $5 trillion globally. Currently trading near $500 per share, Tesla has executed multiple stock splits throughout its corporate history. Given the current valuation, another split could emerge relatively soon.

The company faces legitimate scrutiny—a price-to-earnings multiple of 300 times represents a steep valuation that reflects pure optionality on future robotics revenue. Nevertheless, Tesla has functioned as a story stock generating outsized returns for long-term shareholders despite these fundamentals.

ASML: The Semiconductor Infrastructure Play

ASML occupies an irreplaceable position in global semiconductor manufacturing. As the singular producer of extreme ultraviolet (EUV) lithography equipment, the company supplies essential tools that etch advanced chip designs using specialized light technology. These machines remain indispensable for manufacturing cutting-edge semiconductor components.

Artificial intelligence adoption has turbocharged demand for ASML’s technology. Despite navigating geopolitical complexities surrounding U.S.-China trade dynamics, management guidance projects revenue expansion between 7.6% and 13.3% annually through 2030.

Trading above $1,000 per share, ASML appears well-positioned for a stock split announcement within 2026. The stock commands a 36x price-to-earnings valuation, reflecting analyst expectations for 22% annual earnings growth over the subsequent three to five years. The company’s previous split occurred over a decade ago, suggesting the stock price has accumulated sufficient distance to justify another division.

AppLovin: The Mobile Ad-Tech Accelerator

AppLovin operates within the vast ecosystem of mobile applications and smartphone monetization. The company provides software infrastructure enabling app developers and game studios to acquire, target, and generate revenue from users.

The mobile advertising-technology sector demonstrates remarkable growth momentum. AppLovin’s most recent quarterly results showed revenue expanding 68% to $1.4 billion. Grand View Research estimates the overall mobile ad-tech market could approach $1 trillion by 2030, suggesting substantial runway remains.

Trading at over $700 per share with a 78x forward earnings multiple, AppLovin shows characteristics of a company that has room to expand into its valuation while remaining an attractive split candidate. The company went public during a market enthusiasm period in 2021 but has since climbed approximately 1,000% lifetime, never executing a stock split—making 2026 potentially the year that changes.

Investing Considerations

Stock splits historically coincide with periods of pronounced corporate success. These three companies—Tesla, ASML, and AppLovin—each demonstrate the characteristics that often precede such actions: elevated share prices, strong operational performance, and investor enthusiasm. While splits themselves don’t alter underlying business value, they frequently serve as markers of where market confidence has elevated share valuations and where management sees opportunity to enhance trading liquidity for shareholders.