Broadcom, a semiconductor and infrastructure software giant, is set to undergo a 10-for-1 stock split on July 12 to keep up with the rise of artificial intelligence (AI) demand that has boosted its revenue and stock price. The company has seen nearly 90% growth in the past year and reached over $1,800 in June. Despite the split, the fundamental value of the stock remains the same.
Investors debating whether to buy before or after the split should consider the potential benefits of each strategy. Buying before the split allows investors to secure shares at the current price before it potentially rises following the split, as seen with Nvidia’s recent split announcement. Broadcom’s strong AI demand and acquisition of VMware indicate future growth prospects, making it a solid long-term investment.
On the other hand, buying after the split may allow investors who plan to invest less than the current share price to buy full shares without relying on fractional shares. This could make it easier for some investors to access the stock, especially if their broker does not offer fractional shares.
Ultimately, the decision to buy before or after the split should depend on the funds available to invest. If planning to invest the same amount as Broadcom’s current share price or more, buying before the split may be advantageous. However, if planning to invest less than the current share price, waiting until after the split may provide easier access to full shares.
Regardless of the timing of the investment, Broadcom remains a promising choice for those interested in AI growth opportunities. The company’s strong position in the AI sector, coupled with the potential for future growth from VMware integration and AI revenue forecast, makes it an appealing prospect for long-term investors.
In conclusion, the decision of when to invest in Broadcom before or after the split rests on individual circumstances and preferences. Overall, both strategies have their advantages, and investing in Broadcom, a major player in the AI industry, is likely to yield attractive returns over the long term.
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https://www.fool.com/investing/2024/07/02/should-you-buy-broadcom-before-after-stock-split/