The best stock splits to invest $1,000 in right now

Stock splits don’t change a company’s value, but they often indicate that management expects the business to continue to do well. And this solid operating performance can lead to wealth-enhancing gains for shareholders.

If you have $1,000 or more to invest that you don’t need for day-to-day expenses or to pay off debt, you’ve come to the right place. Read on to learn about two high-quality companies that recently split their stock. Both are poised to offer handsome rewards to their investors.

Split shares in stock to buy no. 1: Walmart

Inflation might be moderate, but the spike in the price of food, shelter and other essentials in recent years has many people looking for discounts wherever they can. In an increasingly expensive world, Walmart (WMT -0.42%)with its prices, it has become an oasis for these bargain-hunting consumers.

A wide selection of discounted groceries and other household products allows Walmart stores to generate strong sales even as shoppers pull back non-essential items. This is one of the reasons why it has outperformed Aim and other competitors that rely more on discretionary sales.

Total return price WMT; data by YCharts.

The retailer’s online sales are also growing rapidly. Booming demand for curbside pickup and delivery fueled a 21 percent increase in Walmart’s e-commerce revenue in its most recent quarter.

An expanding army of third-party merchants has further boosted sales on the company’s online marketplaces. Those sellers are also driving the expansion of Walmart’s lucrative advertising business, which has seen sales grow 26 percent.

Better yet, its investments in automation and artificial intelligence (AI) are boosting profits. The company’s operating income rose more than 8% to $8 billion on a 5% rise in revenue to $169 billion.

Walmart, for its part, chose to reward its shareholders with a 3-for-1 stock split in February. With its value-focused strategy clearly resonating with consumers, investors can expect the retail leader to continue to deliver strong returns.

Split shares in stock to buy no. 2: Nvidia

While Walmart saves people money, Nvidia (NVDA -4.08%) helps its customers create game-changing innovations. The semiconductor leader’s chip designs are at the heart of the AI ​​revolution.

Cloud computing giants ca Microsoft and Alphabet are increasing their spending on AI infrastructure. Nvidia’s chips are the best on the market, so it’s a big beneficiary of this strong trend. The chipmaker’s revenue rose 122% year over year to $30 billion in its most recent quarter. Net profit rose an even more impressive 168% to $16.6 billion.

However, the party is just getting started. Nvidia CEO Jensen Huang estimates that $1 trillion worth of data center equipment will need to be upgraded to new, accelerated computing infrastructure to meet the torrid demand for AI. As the leading supplier of AI chip design, his company will benefit from this massive spending more than any other company.

With its business firing on all cylinders, Nvidia stunned investors with a 10-for-1 stock split in June. Wall Street analysts see plenty of upside left. First, Rosenblatt Securities analyst Hans Mosesmann sees the stock heading toward $200 per share, fueled by strong sales of its upcoming Blackwell tokens. That would represent gains of more than 85% for investors buying shares today.

What’s more, if you invest in Nvidia stock now, you’ll likely be buying along with its management. The board increased its share buyback program by $50 billion on August 26.