On Aug. 4, Advanced Micro Devices (AMD -1.36%) will announce its second-quarter earnings results. Management has guided for revenue in the range of $10.9 billion to $11.5 billion.
That earnings report is coming at a time when companies in the artificial intelligence (AI) space have experienced a sell-off, but those stocks are showing signs of a rebound. A strong earnings report from AMD could both boost its stock price and further fuel the broader sector's rally.
AMD is already trading well above $500 per share. If the stock price keeps rising, shareholders may wonder if a stock split could be on the table.
Image source: The Motley Fool.
The unlikelihood of an AMD stock split in 2026
The last time AMD split its stock was in 2000, when it conducted a 2-for-1 split, so history doesn't offer much of a road map for how management will respond to its current situation. However, the information we have suggests that a stock split is unlikely anytime soon, even if the chipmaker reports monster earnings on Aug. 4.
Stock splits involve legal fees and require additional work through shareholder communication -- expenses a company may prefer to avoid if possible.
In addition, tech companies with stock prices well above AMD's, including Sandisk (around $1,600) and Micron Technologies (around $960), have yet to split their stocks this year. Granted, that's a small sample size, but it shows that even with where their respective stock prices are trading, those chip companies aren't feeling pressured to conduct splits.
NASDAQ: AMD
Key Data Points
Focusing on the upcoming quarterly results
Since investors can't control whether or when a management team splits a stock, the focus on AMD should be around long-term demand for its wares, its efficiency, and its revenue. AMD's updates on Aug. 4 will show whether demand from hyperscalers remains strong and whether gross margins are healthy, and offer some indications about the pace at which its revenue will keep climbing.
