Broadcom (NASDAQ:AVGO) recently announced a 10-for-1 stock split, leading to a 12% surge in its stock price on Thursday to $1,680 per share. The company’s growth has been driven by its artificial intelligence chips for networking. Over the past five years, Broadcom has seen significant growth, with a 104% increase in 2023 and a 55% increase year-to-date in 2024. The stock split, scheduled for July 15, aims to make Broadcom more accessible to investors.
Ten years ago, shares of Broadcom were trading at around $71 per share before the company was acquired and merged with Avago Technologies. An investment of $5,000 in Broadcom back then would be worth approximately $145,000 today, based on an average annualized return of 40%. By comparison, the S&P 500 had an average annualized return of 12.9% during the same period.
The stock split will reduce Broadcom’s stock price to about $165 to $175 per share, making it more affordable for investors. With a market capitalization of approximately $780 billion and being one of the top-performing semiconductor companies in the market, Broadcom presents a potential growth opportunity for investors looking to capitalize on the company’s continued success in the AI sector.
Article Source
https://www.nasdaq.com/articles/if-you-invested-5k-broadcom-stock-10-years-ago-how-much-would-you-have-now