Stock splits have been trending in the market, with multiple companies opting for this strategy to lower their stock prices and make them more accessible to a broader range of investors. Recently, tech giants like NVIDIA and Broadcom have announced 10-for-1 stock splits, with NVIDIA already completing its split and Broadcom set to do the same next month. The move to split shares comes as both companies’ stock prices have risen significantly, making them potentially unaffordable for some investors.
Looking ahead, investors are speculating on which high-performing tech stocks could be the next to announce a stock split. One potential candidate is Super Micro Computer (SMCI), a manufacturer of equipment for AI data centers. Super Micro’s stock has surged over 4,000% in the last five years, reaching over $800. The company has never split its shares in the past, but its recent revenue growth, driven by the demand for AI products, suggests that a stock split could be on the horizon.
Super Micro’s revenue has skyrocketed, reaching $3 billion in the first quarter of this year, thanks to the AI boom. The company’s close partnership with chip leaders like Nvidia positions it well to capitalize on the continued growth of the AI market, which is expected to reach $1 trillion by the end of the decade. With the increasing adoption of liquid cooling technology in AI data centers, Super Micro’s products are in high demand, further fueling its growth prospects.
While a potential stock split by Super Micro could make its shares more accessible to investors, it does not fundamentally change the company’s value. Investors should consider the company’s growth potential and not wait for a split to buy its shares. As Super Micro continues to benefit from the AI market’s expansion, now could be an opportune time to invest in this AI growth stock for the long term.
Overall, the recent stock splits by NVIDIA and Broadcom indicate that companies are confident in their future prospects and are making their shares more accessible to investors. While a stock split is a positive move, it should not be the sole reason to invest in a company. Investors should focus on the fundamental value and growth potential of a stock rather than waiting for a split to occur. As the AI market continues to expand, companies like Super Micro could offer significant returns for investors willing to capitalize on this growth trend.
Article Source
https://finance.yahoo.com/news/prediction-nvidia-broadcom-stock-splits-084500540.html
