Three Stock-Split Companies Worth Holding Long-Term: A Decade-Plus Investment Guide

Understanding Stock Splits and Long-Term Value Creation

When companies announce a stock split, they’re typically signaling confidence in future growth. But what is split share strategy really about? A stock split increases the number of outstanding shares while proportionally reducing the price per share, making stocks more accessible to retail investors and often interpreted as management’s bullish outlook. Over the past few years, numerous corporations have executed splits, yet their underlying fundamentals vary dramatically. If you’re considering where to deploy capital today, here are three companies with strong split histories that merit consideration as decade-long holdings.

1. Nvidia: Commanding the AI Infrastructure Revolution

Nvidia (NASDAQ: NVDA) has demonstrated remarkable confidence through six stock splits in its history, including a 10-for-1 split in June 2024 and a 4-for-1 split three years prior. Since that 2024 split became effective, the stock has appreciated roughly 55%.

The company’s dominance in AI infrastructure cannot be overstated. In its most recent fiscal quarter ending October 2025, Nvidia delivered record-breaking revenue of $57 billion, up 62% annually, with earnings per share reaching $1.30. The data center division alone generated $51.2 billion in revenue, representing 66% year-over-year growth.

What makes Nvidia’s competitive position particularly formidable is its proprietary CUDA architecture. This software ecosystem has become the foundational standard for GPU-accelerated computing, with millions of developers globally optimizing applications around it. This network effect creates substantial switching costs—organizations face tremendous friction moving away from CUDA-integrated workflows and accumulated institutional knowledge.

Nvidia currently controls an estimated 80% to 90% of the AI data center chip market. The company’s technological lead extends beyond current generations: with order backlogs totaling $500 billion through end of 2026 for next-generation Blackwell and Rubin architectures, demand visibility remains exceptional. Expanding into robotics, autonomous vehicles, and digital twins positions Nvidia to capture multitrillion-dollar market opportunities emerging beyond traditional data centers.

2. Netflix: Monetization Beyond the Subscriber Model

Netflix (NASDAQ: NFLX) executed three major stock splits: 2-for-1 in 2004, 7-for-1 in 2015, and most recently, a 10-for-1 split that took effect November 2025.

The streaming pioneer has fundamentally transformed its business model from pure subscriber growth to profitable expansion. Q3 2025 results illustrate this shift: revenue reached $11.5 billion (up 17% year-over-year) while operating margins expanded to 28%, and free cash flow surged to $2.7 billion. The company projects approximately $9 billion in free cash flow for full-year 2025.

Netflix’s revenue diversification strategy is gaining traction. The ad-supported tier is experiencing rapid adoption and tracks toward doubling revenue in 2025. Simultaneously, the company is experimenting with gaming, live sports, and merchandise—each representing potential growth vectors.

While U.S. and Canadian markets show maturation, international expansion remains a significant opportunity. Asia, Europe, and Latin America represent meaningful subscriber growth headrooms. Netflix’s strategy of producing culturally resonant original content—from Squid Game to Stranger Things—enables both retention and new subscriber acquisition. The brand has also proven robust pricing power, raising subscription costs without experiencing meaningful subscriber attrition. Such operational efficiency combined with content scale creates a durable competitive moat.

3. Amazon: Diversified Growth Beyond E-Commerce

Amazon (NASDAQ: AMZN) executed four stock splits, most recently a 20-for-1 split in June 2022—its first split in over two decades. Post-split, shares have advanced approximately 170%.

Amazon’s business today looks markedly different from its e-commerce-centric origins. AWS (Amazon Web Services) remains the foundational profit engine as the world’s dominant cloud infrastructure provider. The AI expansion represents an accelerating tailwind: enterprises require massive computational capacity and specialized infrastructure to support AI workloads. Amazon’s investments in proprietary chips like Trainium and Inferentia enable cost-competitive offerings while maintaining AWS market leadership.

Yet AWS tells only part of the story. The advertising business has evolved into a major margin driver, expanding faster than e-commerce while operating at significantly higher profitability levels. By controlling the point of sale and leveraging first-party customer data, Amazon delivers precision, intent-driven advertising that attracts sellers and brands seeking targeted reach.

E-commerce, while growing slower, benefits from unmatched scale, logistics infrastructure, expansive selection, and everyday low prices. Ongoing automation and robotics investments promise further efficiency gains and margin expansion. The Prime membership ecosystem—exceeding 240 million members globally—creates powerful network effects. Members spend more when receiving integrated benefits spanning shipping, streaming entertainment, and healthcare services.

Q3 results reflected this diversification: net sales grew 13% year-over-year to $180.2 billion. Operating income reached $17.4 billion, while AWS accelerated to 20% growth ($33 billion) driven by AI workload concentration. Advertising segment revenue climbed 22% to $17.7 billion. These dynamics position Amazon as an attractive long-term holding.

The Long-Term Investment Thesis

Stock splits often precede periods of sustained value creation—they signal management conviction regarding future prospects. Nvidia’s technological moat and data center dominance, Netflix’s transition toward profitable diversification, and Amazon’s multi-engine growth platform each present compelling reasons to hold these positions across a decade or longer. For investors seeking exposure to structural secular trends—AI infrastructure, digital entertainment evolution, and cloud computing expansion—these three offer substantive foundations for patient capital deployment.

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