2 Stock-Split AI Stocks to Buy Before They Soar 85% and 105%, According to Certain Wall Street Analysts

Group 1: Stock Splits and Market Performance - Super Micro Computer completed a 10-for-1 stock split in October 2024, while Arista Networks completed a 4-for-1 stock split in December 2024, but neither stock has outperformed the S&P 500 since the splits were announced [1] - Historically, stocks that split have outperformed the benchmark index by an average of 13 percentage points in the year following the announcement [2] Group 2: Super Micro Computer Overview - Super Micro Computer specializes in building data center servers, including liquid-cooled server racks optimized for artificial intelligence (AI), with a market forecast to grow at 30% annually through 2033 [3] - The company has regained compliance with Nasdaq filing requirements after an audit found no evidence of fraud or misconduct related to previous accounting manipulation allegations [6] - For the second quarter of fiscal 2025, revenue rose 55% to $5.6 billion, but gross profit margin contracted 350 basis points to 11.8%, indicating a loss of pricing power amid increasing competition [7] - Wall Street expects earnings to grow at 20% annually through fiscal 2026, making the current valuation of 13 times earnings appear cheap [8] Group 3: Arista Networks Overview - Arista develops networking solutions for cloud and enterprise data centers, with a single operating system for its switches and routers, which reduces network ownership costs and enhances deployment across various cloud types [9] - The company reported fourth-quarter financial results with revenue rising 25% to $1.9 billion and non-GAAP net income increasing 25% to $0.65 per diluted share, with guidance implying 17% revenue growth in 2025 [12] - Arista has a strong presence in high-speed switching categories, holding more than three times the market share of its closest competitor, Cisco Systems, positioning it well to benefit from AI-driven demand for faster data center networks [11] - Management's guidance for 17% revenue growth in 2025 suggests similar earnings growth, and the stock is currently 40% off its high, indicating a potential buying opportunity [14]