This Could Be the Next Big Artificial Intelligence (AI) Stock Split. Here's Why You Should Buy It Before It Happens.

The biggest winners in the stock market over the last two years have all been great companies fueling the biggest innovations in artificial intelligence (AI).

Nvidia is the poster child of big AI stock winners. Its GPUs are essential equipment for training and running large language models. It has seen its stock climb 865% over the last 24 months, leading to a 10-for-1 stock split in June.

Nvidia was far from the only AI-fueled stock to split shares this year. It was joined by Broadcom, Super Micro Computer, and Lam Research, which all executed splits.

A stock split isn't necessarily a catalyst for a stock to zoom higher. The fundamental value of a company doesn't change when management decides to split its shares. And in today's age of fractional shares, it only has a minor impact on making the stock more accessible to small investors.

But a stock split is a sign of confidence from management that shares will continue to climb, and few people have more insights into the future of a company and its stock than management.

So, investors are rightly interested in what could be the next stock to undergo a split. One company essential to the supply of AI semiconductors looks like a great candidate: ASML Holding (NASDAQ: ASML). And at today's share price, investors should be looking to buy the stock before it announces a split.

An essential part of the supply chain

ASML builds and services photolithography machines, which semiconductor manufacturing companies use to produce the chips designed by companies like Nvidia. Basically, without ASML's machines, there are no AI chips.

It's the only supplier of extreme ultraviolet lithography (EUV) machinery, a necessary technology for printing the most advanced chips, such as those used in AI data centers for training and running large language models. If a manufacturer is printing a high-end semiconductor, it's using ASML's machines.

Customers include Taiwan Semiconductor Manufacturing, Intel, and Samsung. All three revamped their foundries about a decade ago to accommodate ASML's machinery.

But the company isn't reliant on selling more machines every year to fuel revenue growth. It receives ongoing revenue from servicing machines already in use and selling replacement parts. The recurring revenue from servicing should grow as more machines are installed in chipmakers' foundries.

ASML's revenue from its installed base has grown significantly faster than its system sales over the last 15 years as foundries add more of its equipment to their operations while maintaining and updating old equipment. And given the long lifespans of ASML's machines (25 to 30 years), that's a steady and growing source of high-margin revenue.