Prediction: This Will Be the First Tech Company to Split Its Stock in 2026

Group 1: Stock Market Performance - The S&P 500 and Nasdaq Composite have gained 16% and 21% respectively as of December 2, 2025, indicating a strong year for the stock market [1] - AI stocks, particularly Nvidia and Alphabet, have significantly outperformed major indexes, with Apple, Meta Platforms, and Microsoft also showing double-digit gains [2] Group 2: Understanding Stock Splits - Stock splits occur when a company's share price rises significantly, making shares appear expensive to investors, despite not changing the company's market capitalization [5][8] - Companies may choose to split their stock to broaden their investor base and make shares more accessible to retail investors [8] Group 3: Recent Stock Splits in Tech - Several major tech companies, including Nvidia, Alphabet, Amazon, and Tesla, have completed stock splits in recent years, with Broadcom and Netflix also participating [10] Group 4: Microsoft Stock Analysis - Microsoft stock has gained 92% during the AI revolution but has lagged behind the broader Nasdaq index [13] - The last stock split for Microsoft occurred in February 2003, and since then, its shares have appreciated nearly 2,000% [13] - Despite advancements in its cloud unit Azure, Microsoft still trails behind Amazon Web Services in market share [16] Group 5: Future Predictions for Microsoft - There is speculation that Microsoft may consider a stock split in 2026 to rejuvenate investor enthusiasm, especially as other tech companies have done so [17] - The perception of Microsoft as an outdated brand may contribute to the need for a stock split to attract more investor interest [17] - Microsoft remains a solid investment choice among megacap AI stocks despite the competitive landscape [18][19]