AMD and Microsoft Thrive Without Stock Splits for Over 20 Years

Advanced Micro Devices (NASDAQ:AMD) and Microsoft (NASDAQ:MSFT) have not split their shares in over 20 years, yet both companies have delivered substantial returns to investors without needing to adjust their share counts. Over the past decade, AMD's stock surged an impressive 9,259%, while Microsoft's shares gained 923%. This performance underscores that investor returns are driven by AI-driven fundamentals rather than the number of shares outstanding.

Both companies recently reported strong quarters fueled by AI demand. AMD's revenue rose 50.1% to $11.54 billion, with data center sales jumping 107% and now making up 58% of its revenue. CEO Lisa Su highlighted that demand for the company's Venice CPUs is stronger than for any prior EPYC generation. Meanwhile, Microsoft's revenue increased 17.8% to $90.01 billion, with Azure growing 43% and Copilot reaching 30 million paid seats.

AMD and Microsoft have a symbiotic relationship, with Microsoft deploying AMD's Helios at scale on Azure. However, Microsoft also uses chips from NVIDIA (NASDAQ:NVDA) and develops its own hardware, giving it pricing leverage over suppliers like AMD. AMD's forward P/E of 40x leaves little margin for error, especially if Helios shipments face yield problems on the complex rack. Microsoft, on the other hand, offers steadier AI exposure with a lower multiple and broader platform benefits.

Looking ahead, AMD's growth profile is supported by orders from Meta Platforms (NASDAQ:META), OpenAI, and Anthropic. However, Microsoft's steady growth and platform breadth provide a more balanced investment option. The decision to split shares remains irrelevant to investors, as both companies continue to thrive without it.