2 Trillion-Dollar Companies Poised to Become Wall Street's Next Stock-Split Stocks

Although artificial intelligence (AI) has been the hottest thing since sliced bread over the last four years, don't overlook the role stock-split euphoria has played in lifting the broader market. Companies undertaking forward stock splits, designed to lower their share price to make it more nominally affordable for retail investors, have effectively been magnets for everyday investors.

Two of Wall Street's elite trillion-dollar companies are ideally positioned to become Wall Street's next stock-split stocks. The only question is: Will the boards at social media titan Meta Platforms (NASDAQ:META) and memory juggernaut Micron Technology (NASDAQ:MU) take the leap?

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Meta Platforms can make "Magnificent Seven" history with a stock split

Mark Zuckerberg's company is unique in that it's the only "Magnificent Seven" member that's never completed a stock split. While fractional-share investing has become more common at online brokers and lessened the need for stock splits, it's fair to question if Meta's nearly $617 share price is keeping some retail investors from participating in its growth story.

Additionally, almost 30% of the company's outstanding shares are held by retail investors. Since institutional investors don't require a lower nominal share price, the higher the non-institutional ownership figure, the more of an impetus there is to conduct a forward split.

Beyond its high share price and sizable retail investor ownership, Meta's stock is well-positioned to rise over the long term. The company's family of apps, including Facebook, WhatsApp, Instagram, and Threads, attracted 3.6 billion daily active users in June. With no other social media platforms coming close to the figure, Meta is a prime destination for advertisers.

Meta Platforms has also successfully integrated AI solutions into its ad platforms. Giving clients access to generative AI enables them to tailor static and video messages to individual users. If this improves click-through rates, it only enhances the company's premium ad pricing power.

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Micron hasn't split in more than a quarter-century

From a nominal dollar standpoint, Micron is even more likely to announce a stock split than Meta. It closed out the Labor Day weekend at nearly $1,017 per share, with everyday investors holding more than 26% of its outstanding shares. This is certainly a large enough retail investor presence to merit action by the board of directors, which hasn't approved a stock split since 2000.

But the primary stock-split catalyst is the belief that its share price will head even higher. Micron's claim to fame, and the reason its shares have rallied more than 1,100% over the trailing 16 months, is its ideal positioning as an AI-accelerated data center memory provider.

Micron's high-bandwidth memory (HBM) is packaged with graphics processing units, enabling lightning-fast data transfer speeds, which is necessary when software and systems are being tasked with split-second decision-making.

Furthermore, the insatiable demand for HBM solutions far outstrips supply, leading to both incredible pricing power for Micron and a backlog that's been booked more than a year in advance. The commoditization of memory and storage solutions often upends these companies after a short period. However, fully booked contracts through 2027 suggest that Micron's otherworldly sales and profit growth can continue for the foreseeable future.

Sean Williams has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Micron Technology. The Motley Fool has a disclosure policy.