Three Stock-Split Plays Showing Explosive Growth Potential: 40%, 35%, and 640% Upside Opportunities

What Makes Stock Splits Attractive for Growth Investors?

When corporations divide their existing shares into multiple new shares, they create what’s known as a stock split. This action increases the total number of shares while proportionally reducing the price per share—making equities more accessible to retail investors without altering the company’s overall market value. In recent years, numerous quality enterprises have executed splits, and several are positioned for substantial appreciation in the years ahead. For investors looking to deploy capital with conviction, three split-adjusted stocks stand out as compelling long-term holdings with meaningful upside potential.

Netflix: Streaming Dominance Meets Advertising Momentum

The streaming pioneer executed a 10-for-1 stock split effective November 17, 2025, with shares currently valued around $94. Wall Street’s consensus 12-month target sits near $133, implying roughly 40% gains from present levels, with bullish estimates projecting as much as 62% appreciation.

The company’s trajectory hinges on its advertising-supported tier, launched in late 2022, which is accelerating profitability beyond traditional subscription models. Management expects advertising revenues to double throughout 2025, now reaching 190 million monthly active viewers and commanding premium rates that rival traditional media networks. The platform’s venture into live programming—hosting NFL and WWE events—has proven transformative for subscriber acquisition, retention, and viewership records while establishing Netflix as a premium ad platform.

Geographic expansion remains a significant growth engine, particularly in Asia-Pacific and Latin America, where subscriber penetration lags developed markets. During Q3 2025, the company achieved record engagement and growth metrics. The animated feature “KPop Demon Hunters” emerged as the quarter’s primary catalyst, accumulating 325 million views and becoming Netflix’s most-watched film to date. Meanwhile, the second season of “Wednesday” generated over 1 billion viewing minutes, and the original series “Black Rabbit” surpassed 1.2 billion minutes. These content successes drove a 17% year-over-year revenue increase to $11.5 billion and market-leading viewing shares of 8.6% in the U.S. and 9.4% in the U.K.

A transformative development emerged in December 2025 with Netflix’s announcement of an $82.7 billion acquisition of Warner Bros. Discovery, which would consolidate HBO, Warner Bros. studios, and major streaming assets. Though regulatory hurdles loom, this consolidation would strengthen Netflix’s content moat. As the company transitions toward a mature, cash-generative model, its scale and brand equity maintain commanding competitive advantages.

Broadcom: The AI Infrastructure Pick-and-Shovel Play

The semiconductor infrastructure leader completed a 10-for-1 stock split on July 15, 2024, with shares trading near $350. Wall Street forecasts 35% upside potential over the next 12 months, with aggressive targets suggesting 58% appreciation. (Note: Broadcom’s Canadian Depositary Receipts underwent a separate 6-for-1 split effective November 14, 2025.)

Broadcom supplies custom AI accelerators and Ethernet switching infrastructure to hyperscale data centers, serving marquee customers including Google, Meta, Anthropic, and OpenAI. The company’s fiscal 2025 revenue hit a record $64 billion, representing 24% growth from the prior year’s $51.6 billion. AI semiconductor revenue alone reached $20 billion—a 65% year-over-year surge—with management guiding for double-digit growth in early fiscal 2026.

The semiconductor solutions segment generated $37 billion in revenue (58% growth), while infrastructure software contributed $27 billion (26% growth), substantially aided by the November 2023 VMware acquisition. This software segment offers recurring, high-margin revenue that provides stability against potential hardware margin compression. The company’s balance sheet reflects this strength: fiscal 2025 adjusted EBITDA climbed 35% to $43 billion, accompanied by robust free cash flow of $26.9 billion.

Perhaps most tellingly, Broadcom’s AI-related hardware backlog swelled to $73 billion—signaling sustained demand strength. The company’s positioning as a full-stack AI infrastructure vendor with both hardware prowess and enterprise software capabilities creates a defensible moat against competitors.

ServiceNow: An Enterprise Cloud Giant on the AI Cusp

ServiceNow executed a 5-for-1 stock split on December 18, 2025, with split-adjusted shares trading near $155. Wall Street’s enthusiasm here reaches fever pitch: the median 12-month price target implies 640% upside from current levels, while aggressive forecasts suggest 735% appreciation. Multiple factors of 640% returns potential underscore analyst conviction in the company’s trajectory.

The enterprise cloud platform automates and manages digital workflows across IT operations, human resources, customer service, security, and adjacent departments—functioning as a centralized command center that replaces manual processes with AI-driven automation. ServiceNow’s Now Assist suite of generative AI solutions represents its flagship offensive, targeting $1 billion in annual contract value by end-of-2026.

The company’s fortress-like customer base comprises over 85% of Fortune 500 enterprises, including Walmart, Amazon, Microsoft, Apple, JPMorgan Chase, and the U.S. Department of Defense. This deep enterprise penetration creates substantial switching costs and supports a renewal rate exceeding 96%, providing revenue predictability. Q3 2025 subscription revenue reached $3.3 billion (22% year-over-year growth), while current remaining performance obligations totaled $11.4 billion, up 21% annually. The company delivered adjusted earnings of $4.82 per share alongside $592 million in adjusted free cash flow at a 17.5% margin.

Recent acquisition activity reflects management’s confidence in the company’s direction. The $2.85 billion purchase of AI firm Moveworks in March 2025 bolstered its generative AI capabilities, while negotiations surrounding a reported $7 billion acquisition of cybersecurity specialist Armis signal intent to expand into device security and governance—critical infrastructure for enterprise AI deployments. Near-term volatility from acquisition announcements and broader tech sector fluctuations may create entry opportunities for conviction investors believing in ServiceNow’s positioning as a transformative force in AI workflow automation.

Final Considerations

Each of these three stock-split equities represents a distinct investment thesis: Netflix captures streaming platform dominance with emerging ad economics; Broadcom serves as the foundational infrastructure beneficiary of AI deployment; and ServiceNow provides enterprise cloud automation powered by generative AI. While past performance offers no guarantees, the combination of strong fundamentals, market positioning, and analyst conviction suggests meaningful long-term appreciation potential for patient investors.