Stock splits can lead to temporary increases in stock prices.
The “Magnificent Seven” stocks represent a well-known collection of substantial companies in the stock market. This group consists of:
- Nvidia
- Alphabet
- Apple
- Microsoft
- Amazon
- Meta Platforms
- Tesla
These firms are regularly among the top ten globally by market capitalization, so keeping an eye on their trends is crucial for effective investing.
One exciting possibility for investors is stock splits, particularly with two companies from this group potentially splitting their stocks in 2026. This could generate significant market excitement, though it raises the question: which two stocks might split?
The Magnificent Seven is no stranger to stock splits.
Since 2020, several members of this group have executed stock splits, including Nvidia, Alphabet, Apple, Amazon, and Tesla. However, Meta and Microsoft are notable exceptions, as they haven’t split their stocks in quite some time.
To illustrate, Microsoft’s last stock split was in 2003, after establishing a pattern of regular splits. Currently, its stock price is nearing $500 and could reach that in 2026.
On the other hand, Meta Platforms has never split its stock since going public in 2012. At around $650 a share, it’s presently the priciest stock within the Magnificent Seven, having previously hovered near $800 before a significant decline following a disappointing earnings report.
I think it’s quite possible we could hear announcements of stock splits from any of these companies by 2026. The anticipation around such events tends to boost stock prices of prominent firms. Still, I believe there are more solid reasons to invest in either stock, and both could represent good options moving toward 2026.
Microsoft and Meta Platforms don’t need a stock split to be worthwhile investments
Both Microsoft and Meta Platforms are key players in the artificial intelligence arena, albeit with differing strategies. Microsoft adopts a neutral stance, aiming to be an AI champion instead of pushing a singular solution. Its partnership with OpenAI, the developer behind ChatGPT, enables integration of their technologies into products like Copilot for Office, along with a selection of competing models in its Azure library. This flexibility allows users to build a range of generative AI models on its cloud platform, positioning Microsoft favorably in the AI sector.
While Microsoft’s success is tied to OpenAI, it isn’t reliant on just one product. This broad approach has led to impressive revenue growth, particularly within cloud computing—Azure being the fastest-growing segment among major providers. I believe this strong momentum will carry on through 2026, making it an attractive investment.
Meta Platforms serves as the parent corporation for social media giants Facebook and Instagram, garnering a significant portion of its revenue from advertising, which has seen considerable boosts thanks to generative AI. This trend has allowed Meta to expedite revenue growth in recent quarters.
However, there’s a catch. Investors are concerned about Meta’s spending. The company has indicated that its projected capital expenditures, largely focused on AI data centers, are expected to grow significantly in 2026, possibly surpassing $100 billion. Many investors find this expenditure concerning, leading to stock sell-offs.
That said, I think Meta could recover over the year if it shows continued ROI and innovations, particularly in AI glasses. If Meta can showcase these advancements, it might prove to be an excellent stock to own by 2026, regardless of whether a stock split happens.
