Every time a company splits its stock, one of the reasons it gives is that it makes its stock more accessible to smaller investors. Never mind that the advent of fractional shares enables these smaller investors to own a specific amount as low as a dollar for stock split candidates.   

Nvidia (NASDAQ:NVDA) announced May 22 that it was splitting its stock on a 10-for-1 basis. In the two weeks before the shares actually split on June 7, they jumped 27%. They gained another 9% in the week after. 

So, even if the shares were $2,000 before the gains pre-split, they still could have been had on June 8 for $254 [$2,000 x 1.27/10]. 

Now, Broadcom (NASDAQ:AVGO), another AI dynamo, is splitting its shares 10-for-1 on July 15. Since it announced its stock split – at the same time as Q2 2024 earnings – AVGO stock is up 22% with a month to go before the split takes effect. 

Ultimately, the most common reason for stock splits is to increase common share liquidity. 

Here are three likely stock split candidates in 2024. 

Super Micro Computer (SMCI)

Of the three names on my list of stock split candidates, Super Micro Computer (NASDAQ:SMCI) has the highest share price of the three at $911. Its shares are up almost 310% in the last year. Up until March 2023, SMCI stock never traded over $100, so there was never a need. 

Super Micro Computer high-performance server and storage solutions address computational-intensive workloads, as it states on its 2023 10-K.  

“We offer a broad range of accelerated compute platforms that are application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories, which can be used to build complete server and storage systems.

“These Total IT Solutions and products are designed to serve a variety of markets, such as enterprise data centers, cloud computing, AI and 5G/edge computing.”

Admittedly, I haven’t spent much time following SMCI, but it’s growing like hotcakes. In Q3 2024, its revenues jumped 200% to $3.85 billion. In 2024, it expects $14.7 billion in revenue, more than double a year earlier. On a non-GAAP basis, it expects to earn $23.69 a share at the midpoint of its guidance. 

Based on this guidance, it trades at 38.5x its expected 2024 earnings. Assuming revenues keep growing triple digits, a 10-for-1 stock split like Nvidia or Broadcom is in order.  

Coinbase Global (COIN)

Coinbase Global (NASDAQ:COIN) operates one of the world’s largest cryptocurrency exchanges. As its investor relations site states, the quarterly volume traded on its platform is approximately $312 billion. It protects over $330 billion in cryptocurrency assets from over 100 countries.

Thanks to the rebound in Bitcoin (BTC-USD) and other cryptocurrencies over the past year, its shares are up more than 57% year-t0-date and 333% over the past year. Trading around $247, I doubt a 10-for-1 stock split would be in the cards, but a 5-for-1 would seem to make sense. 

Besides Bitcoin, Coinbase would be the next-best proxy for the cryptocurrency industry. If the industry does well, Coinbase will, too. 

In late May, Coinbase was upgraded from “underperform” to “neutral” by BofA Securities. More importantly, it raised its target price by nearly double to $217 from $110. It believes that the company’s expense controls have kept a lid on expenses, and profitability. 

BofA isn’t the only Wall Street firm less than sold on the company. Of the 29 covering COIN stock, only 12 rate it a “buy,” with four calling it a “sell.” 

If there’s a stock that could use a stock split, Coinbase would be it. 

Abercrombie & Fitch (ANF)

Abercrombie & Fitch (NYSE:ANF), the company and stock, are both ablaze. 

The retailer, whose brands include Abercrombie, Abercrombie Kids, Hollister, and Gilly Hicks, reported its best Q1 in the history of the company on May 29. Shares jumped 24% on the news. They’re now up 107% in 2024 and 419% over the past year. 

Its earnings were $2.14 a share, 40 cents higher than the analyst estimate, while revenues were $1.02 billion, $57 million higher than the Wall Street consensus. The quarter’s biggest achievement was 7x revenue growth last year. 

Interestingly, of the two brands, Abercrombie’s growth is much more impressive, up 31% year-over-year, compared to 12% for Hollister. Anytime you can grow revenues by double digits you’re doing alright. 

Abercrombie’s two-year same-store sales stack is 24% (Q1 2024 and 2025). In Q1 2022, sales were so bad, it didn’t provide those numbers. That’s how far it’s come.   

In 2023, its shares gained over 200%. Last December, I recommended that investors buy its shares. I continue to feel it’s one of the few shining stars in apparel retail. 

Trading around $188, a 3-for-1 stock split seems about right. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.