ASML (NASDAQ: ASML ) is off to a strong start this year, with shares climbing more than 64% as of this writing.
When a stock trades near $1,000, shareholders and investors interested in the company start to wonder if there will be a split. As ASML approaches $1,800 per share, the level of interest increases further. However, even if ASML’s stock price exceeds $2,000, there is no guarantee that the distribution will occur.
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The Investor Psychology Behind Stock Distributions
For investors interested in a pick-and-shovel play Artificial intelligence (AI) infrastructure, ASML provides the machines and tools required for chip manufacturing. It calls itself “the world’s supplier to the semiconductor industry.”
The same investors interested in ASML will also be waiting for the stock split. This is because the higher the stock price, the more retail investors who want to own it feel undervalued. Shareholders also want to see the split to ensure that shares are being bought.
If ASML splits its stock, there is no way to know how it will be structured. For example, if ASML had a 10-for-1 stock split with shares trading at $1,800, the post-split price would be $180 per share. If he did a 20-for-1 stock split, the price would be $90 per share.
With ASML’s performance in 2026, however, the management team may not feel the need to divest the stock anytime soon.
Why Stock Dividends Are Never Given
When the stock price continues to rise, it is a sign of strong investor demand for the company. Although ASML started the year at around $1,113 per share, it has continued to be bought and is trading around $1,761. If it is still being bought and the stock price is rising, there is no incentive for the management team to change anything immediately.
Not doing a split can be beneficial to long-term shareholders, as announcing a split can create additional volatility around the stock. The announcement may send the stock higher in the short term, but it may cause a sell-off after the distribution. Some people want to take advantage of the news of the distribution and then sell their shares when the distribution is completed.
What to focus on instead of stock splits?
For anyone considering investing in ASML, understanding the upside and risks of the investment will be more beneficial than speculating about whether the stock will split in 2026.