Wall Street's Blockbuster AI Stock Split of 2026 Has Arrived -- and This Supercharged Growth Stock Has Soared More Than 1,100% Since Its IPO

While artificial intelligence (AI) has been Wall Street's primary catalyst for years, it's not the only trend responsible for lifting the tide. Investors' excitement over high-profile stock splits has played a role in sending Wall Street's major indexes to new heights.

Since the year began, online travel site Booking Holdings and e-commerce-based used-vehicle retailer Carvana have been two of the most talked-about stock-split stocks. Today, arguably the most prominent stock split of the year goes into effect, courtesy of AI-powered cybersecurity solutions provider CrowdStrike Holdings (NASDAQ: CRWD).

Image source: Getty Images.

Stock splits come in two varieties

A stock split is an event that allows a public company to cosmetically adjust its share price and outstanding share count. This change is superficial in the sense that it doesn't alter a company's market cap or its underlying operating performance.

Retail investors' excitement about a stock split often depends on which type of split is being completed. Reverse splits, which are designed to increase a company's share price, are usually shunned by investors. Companies enacting a reverse split are typically struggling and attempting to avoid delisting from a major stock exchange.

On the other hand, investors typically flock to businesses announcing forward stock splits. This type of split aims to make a company's shares more nominally affordable for retail investors who can't buy fractional shares through their broker.

CrowdStrike has effected a 4-for-1 forward split before today's (July 2) opening bell. The company's share price, which has been hovering around $700, will be reduced to roughly $175, and its outstanding share count will quadruple. This'll make it easier for everyday investors to participate in the CrowdStrike growth story.

Image source: Getty Images.

CrowdStrike possesses well-defined advantages (but is also very pricey)

Shares of CrowdStrike Holdings have soared more than 1,100% since its initial public offering (IPO) in June 2019. This outsize gain is a function of its laundry list of competitive advantages.

On a macro basis, cybersecurity has evolved from a premium for businesses to a necessity. Since hackers don't take holidays, cybersecurity software is always in demand.

CrowdStrike's Falcon security platform is driven by AI and machine-learning solutions, making it more adept than on-premises security solutions at recognizing and responding to potential threats. Though Falcon isn't the cheapest option in the end-user cybersecurity arena, CrowdStrike's high-90% gross retention rate signals superior protection.

Staggering growth.

CrowdStrike has now grown revenue at more than a 50% CAGR over the last decade.$CRWD pic.twitter.com/4I1UcFqzUA

-- Fiscal.ai (@fiscal_ai) June 4, 2026

But the clearest evidence that Falcon is resonating with its customers is the company's add-on sales data. In its latest reported quarter, CrowdStrike notes that 51% of its clients have purchased six or more cloud modules, with 25% supporting eight or more. Add-on sales are a big deal when talking about software-as-a-service solutions that boast an adjusted gross subscription margin of around 80%.

But despite CrowdStrike's jaw-dropping sales growth and otherworldly margins, its stock isn't cheap. History shows that companies at the forefront of game-changing trends haven't been able to sustain price-to-sales (P/S) ratios above 30. CrowdStrike closed out June 26 with a P/S ratio of 35, placing it firmly in bubble territory.

While CrowdStrike's operating results demonstrate that it's firing on all cylinders, there's not much meat left on the bone for investors.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings and CrowdStrike. The Motley Fool has a disclosure policy.