One of the more interesting developments in investing in recent years has been the resurgence of stock splits. The once common practice had lost popularity, but has seen a renaissance in recent years. Companies generally choose this route when years of strong results make the stock price less attractive to ordinary investors. A stock split ensures that more shares trade at a lower price; it does not change a company’s market capitalization.

Newton’s first law of motion states that an object in motion tends to stay in motion unless acted upon by an external force. The same principle could easily be applied to investing in successful companies. Companies that perform stock splits see an average share price increase of 25% in the year following the announcement, compared to 12% for those that do not. S&P500according to Bank of America Analyst Jared Woodard.

Here are three stock split stocks with upside potential of up to 148% according to certain Wall Street analysts.

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Nvidia: Implied upside potential 62%

Probably the most famous stock split share of recent times is NVIDIA (NVDA 4.55%)and the chipmaker still has plenty of potential. It is the leading supplier of graphics processing units (GPUs), which are used for data centers, cloud computing and artificial intelligence (AI) to send data through the ether. That business has moved beyond its humble beginnings in creating lifelike images in video games.

In the first quarter of fiscal 2025 (ended April 28), Nvidia reported record revenue that rose 262% year over year to $26 billion, leading to diluted earnings per share (EPS) that rose 629% to $5.98. The results were driven by revenue in its data center business – which includes cloud and AI chips – as the segment’s revenue rose 427% to $22.6 billion. This was the fourth consecutive quarter of triple-digit revenue and profit gains.

It’s no wonder that results of this magnitude have sent Nvidia’s stock price soaring. It’s up nearly 800% since the start of 2023, which culminated in a spectacular 10-for-1 stock split in June. But some on Wall Street believe this is just the tip of the iceberg. Rosenblatt analyst Hans Mosesmann maintains a buy rating on Nvidia and a $200 price target, representing potential upside of 62% from Thursday’s closing price.

The analyst cites Nvidia’s accelerated development cycle and track record of innovation as evidence that there is more to come. “We see Nvidia’s Hopper, Blackwell and Rubin series as the driving force behind ‘value’ market share in one of Silicon Valley’s most successful silicon/platform product cycles,” Mosesmann wrote in a note to clients.

He is not alone in his optimistic forecast. Of the 59 analysts who expressed their opinion in July, 54 rated the stock as a buy or strong buy, and none recommended sale.

I think the analyst hit the nail on the head. Nvidia’s customers have reported that they are increasing their investments in AI, which directly benefits Nvidia. In addition, partners have reported optimistic results, suggesting that the AI ​​revolution is underway. To me, this is compelling evidence that Nvidia stock will continue to rise.

MicroStrategy: Implied upside potential 61%

The second stock with significant upside potential is MicroStrategy (MSTR 12.11%)which split its stock earlier this month. The company offers subscription-based, AI-powered business analytics software that enables non-technical users to gain actionable insights from their data. MicroStrategy also offers cloud-based services for government agencies.

What sets the company apart, however, is its Bitcoin Strategy that is really making waves. MicroStrategy calls itself the “largest corporate holder of Bitcoin and the world’s first Bitcoin development company.”

In the second quarter, revenue from subscription services rose 21% year over year, even as total revenue fell 7% and operating loss increased more than sevenfold. MicroStrategy made much more progress on the bitcoin front, however, increasing its holdings to 226,500 bitcoins, worth more than $13 billion at the time of writing, well above its $8.3 billion cost base.

Despite the company’s risky strategy, some on Wall Street remain bullish. Benchmark analyst Mark Palmer recommends MicroStrategy as a buy and has a split-adjusted price target of $215, which is Wall Street’s highest price target. That represents a potential upside of 61% from Thursday’s closing price. The analyst says that while the company has critics, MicroStrategy’s share price has risen nearly 1,000% since launching its bitcoin strategy four years ago, far outperforming the returns of bitcoin itself, which has gained 413%. That no doubt played a role in the company’s 1:10 stock split earlier this month.

The consensus on Wall Street appears to be the same. Of the seven analysts covering the stock in July, all recommended it as a buy or strong buy, and none recommended it as a sell.

For investors who believe that Bitcoin will retain its value and continue to gain ground over time, MicroStrategy’s strategy is simply brilliant. However, it is important to remember that Bitcoin has lost up to 75% of its value as of late 2022. Investing in MicroStrategy could be just as volatile.

I believe MicroStrategy offers an attractive opportunity for investors who like some volatility and a long investment horizon. However, I also believe there is some risk involved and that MicroStrategy should only make up a small portion of a balanced portfolio.

Super Microcomputer: implicit upside potential 148%

The last of my three stock splits with a lot of potential is Super-microcomputer (SMCI 1.39%)also known as Supermicro. The company is one of the leading custom server providers in the industry and has more than 30 years of experience.

Supermicro made the leap into the big leagues thanks to strong demand from those looking to join the AI ​​revolution. However, it was the company’s building block architecture, power efficiency and direct liquid cooling that drove demand for its rack-scale servers, as the devices could be customized to the user’s needs while being energy efficient and able to withstand the rigors required to run AI models.

In the fourth quarter of fiscal 2024 (ended June 30), Supermicro reported record revenue that rose 143% year-over-year to $5.3 billion, up 38% quarter-over-quarter. This resulted in adjusted earnings per share (EPS) that rose 78% to $6.25. This was the third consecutive quarter of triple-digit gains for the company.

Supermicro’s continued robust growth has driven its share price higher, with gains of 637% since the beginning of last year, likely contributing to the company’s decision to announce a 10-for-1 stock split earlier this month.

Wall Street believes there is still more upside potential. Loop Capital analyst Ananda Baruah is one of the biggest bulls. He recommends buying the stock and has a price target of $1,500 on Wall Street. That means a potential gain of 148 percent for investors compared to Thursday’s closing price.

The analyst believes Supermicro has much greater revenue potential than Wall Street gives the company credit for, estimating that revenue will rise to $40 billion by the end of fiscal 2026. For comparison, Supermicro generated less than $15 billion in revenue in fiscal 2024. The analyst’s forecast is also closely aligned with management’s forecast, which calls for net revenue of around $28 billion for fiscal 2025.

Wall Street seems to agree. Of the 17 analysts covering the stock in July, 11 rated it a buy or strong buy, and none recommended selling.

I completely agree with this analyst’s opinion. The company continues to gain market share from its larger competitors, continues to accelerate its growth, and takes a pole position in the AI ​​revolution.