Wednesday, January 22, 2025

Stock Splits Gain Popularity: Key Opportunities on Wall Street

Date:

  • Nvidia: Strong AI demand and software growth, 56% upside potential.
  • Celsius Holdings: Robust energy drink market, 75% upside potential.
  • Sirius XM Holdings: Strategic initiatives and merger benefits, 100% upside potential.

Stock splits are increasingly popular on Wall Street this year, driven by years of strong financial performance that elevate stock prices beyond the reach of smaller investors. While stock splits are cosmetic, they make shares more accessible to retail investors and employees. More importantly, they often follow strong business results, suggesting continued growth potential. Here are three companies with significant upside, according to Wall Street analysts.

Nvidia: Highest Price-Target Upside, 56%

Nvidia (NASDAQ: NVDA) remains a leader in GPUs for gaming, cloud computing, and AI. The demand for AI chips has skyrocketed, with Nvidia’s revenue jumping 262% year over year in Q1 2025, reaching $26 billion. Earnings per share surged 629% to $5.98. Nvidia’s recent 10-for-1 stock split has fueled investor interest, and analysts like Rosenblatt’s Hans Mosesmann project a 56% upside, citing strong AI chip demand and integrated software growth.

Bourse : Nvidia explose les compteurs, jusqu'où ira le numéro 1 de  l'intelligence artificielle ?

Celsius Holdings: Highest Price-Target Upside, 75%

Celsius Holdings (NASDAQ: CELH) focuses on healthier energy drinks, becoming the third-largest brand in the sector. Its 3-for-1 stock split followed robust growth, with Q1 revenue increasing by 37% to $356 million and diluted EPS up 108%. Despite a recent 23% stock drop, Jefferies analyst Kaumil Gajrawala sees a 75% upside, attributing slower growth to typical national distribution phases and viewing the dip as a buying opportunity.

Celsius Holdings (CELH) Q4 Earnings Coming Up: Factors to Note

Sirius XM Holdings: Highest Price-Target Upside, 100%

Sirius XM Holdings (NASDAQ: SIRI), a leader in satellite radio, faces macroeconomic challenges and investor concerns over its merger with Liberty Sirius XM. Despite a 41% stock drop in 2024, Q1 revenue rose 1% to $2.16 billion, with EPS up 17%. Benchmark analyst Matthew Harrigan predicts a 100% upside, noting undervaluation and potential growth from strategic initiatives and an improving U.S. economy.

What's Next For Sirius XM Stock?

Conclusion

The popularity of stock splits on Wall Street highlights the ongoing success and growth potential of leading companies. Nvidia, Celsius Holdings, and Sirius XM Holdings exemplify this trend, with strong financial performance and promising futures according to analysts. These companies, with their respective market strengths and strategic initiatives, present compelling opportunities for investors looking to capitalize on their projected upsides. As always, careful consideration and analysis are essential when making investment decisions.

+ posts

Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website.

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