3 Stock-Split Stocks to Buy Before They Soar as Much as 215%, According to Select Wall Street Analysts

Over the past few years, there's been a resurgence in the popularity of stock splits. The practice was commonplace in decades past, but had fallen out of favor, only to rebound in recent years. Companies will typically embark on this course after years of strong business and financial results, resulting in a surging stock price.

Evidence suggests that the strong performances that precipitated stock splits tend to continue. Companies that conduct stock splits deliver stock price gains of 25%, on average, in the year following the announcement, compared with average increases of 12% for the S&P 500, according to data compiled by Bank of America analyst Jared Woodard.

Here are three stock-split stocks that still have a long runway ahead, with upside of as much as 215%, according to select Wall Street analysts.

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1. Broadcom: Implied upside 36%

The first among our stock-split stocks that represents a compelling opportunity for investors is Broadcom (NASDAQ: AVGO). The company offers a host of software, semiconductor, and security products that run the gamut in the mobile, broadband, cable, and data center spaces.

Indeed, the company reports that "99% of all internet traffic crosses through some type of Broadcom technology." This means that Broadcom's technology will be instrumental in the adoption of artificial intelligence (AI).

The company's recent results are telling. In Broadcom's fiscal third quarter (ended Aug. 4), revenue jumped 47% year over year to $13 billion, driving adjusted earnings per share (EPS) up 18% to $1.24. The company continues to integrate VMWare, which has pressured earnings, but management is expecting a more meaningful contribution in fiscal 2025. Broadcom also increased its full-year revenue guidance to $51.5 billion, which would represent growth of nearly 44%.

The company's track record of solid, consistent growth led to a 10-for-1 stock split in July. The stock has more than tripled since the start of 2023 -- which coincided with the onset of the AI revolution -- but many on Wall Street believe the best is yet to come. Rosenblatt Securities analyst Hans Mosesmann maintains a buy rating on Broadcom stock and a Street-high, split-adjusted price target of $240. This represents potential upside for investors of 36% compared to Friday's closing price.

Mosesmann suggests that management's guidance is conservative, leaving the potential for upside revisions. He sees particular opportunities in Broadcom's application-specific integrated circuits (ASICs) and ancillary products that support networking and switching, which will see increased AI-related demand. He also posits that the integration of VMWare will boost Broadcom's results.

Mosesmann isn't alone in his bullish prediction. Of the 39 analysts who rated the stock in September, 35 rated the stock a buy or strong buy, and none recommended selling.

Investors might be surprised to learn that Broadcom stock trades for less than 28 times next year's expected earnings, which I believe is a bargain, considering its long track record of growth and expansive opportunity.

2. Nvidia: Implied upside 85%

The second stock-split stock with a long runway ahead is Nvidia (NASDAQ: NVDA). The company's graphics processing units (GPUs) have become the gold standard for a variety of applications, including video games, cloud computing, and data centers. This technology is also instrumental in processing generative AI, providing the computational horsepower that makes it possible.

This has, in turn, fueled blockbuster results for Nvidia. For its fiscal 2025 second quarter (ended July 28), Nvidia delivered record quarterly revenue that climbed 122% year over year to $30 billion, while its diluted earnings per share (EPS) soared 168% to $0.67. The results were propelled higher by the company's data center segment -- which includes the chips used for AI -- as revenue surged 154% to $26.3 billion.

That marked Nvidia's fifth consecutive quarter of triple-digit sales and profit growth, while its stock has risen 754% since the start of 2023, leading to a 10-for-1 stock split. The stock has been on a roller-coaster ride in recent months, first losing more than a quarter of its value, then staging a remarkable recovery, and now sits less than 8% off its all-time high.

There's likely more to come -- but don't just take my word for it. Rosenblatt analyst Hans Mosesmann reiterated his buy rating and Street-high price target of $200 on Nvidia, which represents potential gains of 60% compared to Friday's closing price.

The analyst believes investors are missing an important element of Nvidia's success, saying: "The real narrative lies in the software that complements all the hardware goodness. We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability."

He isn't the only one who believes Nvidia has further to run. Of the 60 analysts who issued an opinion in September, 55 rated the stock a buy or strong buy, and none recommended selling.

I don't have any doubts about the potential for Nvidia stock to go higher from here. In fact, I think the analyst's price target might well be conservative.

3. Super Micro Computer: Implied upside 215%

The last of our trio of stock split stocks is admittedly the most controversial. Super Micro Computer (NASDAQ: SMCI), also known as Supermicro, has been a leading provider of custom-designed servers for more than 30 years.

The company's secret weapon is the building-block architecture of its rack-scale servers. By designing interlocking major components, Supermicro customers can create the system that's best suited to their specific needs -- and price range -- rather than simply taking something off the "rack." The company is also a clear leader in the area of direct liquid cooling (DLC), which is uniquely suited to handle the rigors of AI. CEO Charles Liang estimates that Supermicro controls between 70% and 80% of the DLC market.

In its fiscal 2024 fourth quarter (ended June 30), Supermicro generated record revenue that climbed 143% to $5.3 billion. At the same time, the company delivered adjusted EPS that jumped 78% to $6.25. While declining profit margins raised eyebrows, Liang blamed a temporary bottleneck of component parts and product mix for the decline and expects a rebound in due course. That said, the company's track record of strong results preceded a 10-for-1 stock split, which was completed earlier this week.

Supermicro has become a battleground stock in recent weeks, however. In late August, a short report by Hindenburg Research alleged accounting irregularities, sanctions violations, and undisclosed third-party transactions, among other accusations. The following day, Supermicro delayed the filing of its annual report, citing a need to assess the "design and operating effectively of its internal controls." If that weren't enough, a report emerged suggesting the U.S. Justice Department was investigating the company, according to the Wall Street Journal.

Despite the resulting uncertainty, some on Wall Street are undeterred. In the wake of these revelations, Rosenblatt analyst Hans Mosesmann maintained a buy rating and a split-adjusted Street-high price target of $130 on the stock. That represents potential upside of 215% compared to Friday's closing price. The analyst suggests the recent stock price correction "seems over the top when considering the Hindenburg dynamic as old news or inaccurate."

Not surprisingly, others on Wall Street have taken a "wait and see" approach. Of the 18 analysts who covered the stock in September, nine still rate the stock a buy or strong buy. The rest recommend holding, and none recommend selling.

As a short seller, Hindenburg Research has a vested interest in driving the stocks it targets lower, so its motives are suspect. Furthermore, it has a mixed track record, so its conclusions shouldn't be considered gospel.

For investors with the stomach for a little risk, I think the opportunity of owning Supermicro stock outweighs the risk represented by the -- as yet -- unsubstantiated claims by a short seller. And as a Supermicro shareholder, my money is where my mouth is. Finally, at just 21 times earnings, Supermicro stock is a bargain.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Danny Vena has positions in Nvidia and Super Micro Computer. The Motley Fool has positions in and recommends Bank of America and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.