"Stocks that have undergone a split are bound to see an inflow of retail investors who want to make the most of the freshly lowered stock prices. While a lower stock price doesn't mean much, the number of shares issued can be higher. There's often a rush of investors who jump in after a stock split since it feels like they're getting a handful of shares for the same amount. Increased accessibility is always a good idea."
"Broadcom (NASDAQ:AVGO) is one of the hottest artificial intelligence stocks right now. The company's business is performing extremely well and has delivered incredible fundamentals. Broadcom stock went for a 10-for-1 stock split in 2024, and it has been unstoppable since then. Exchanging hands for $364, the stock is up 56% year-to-date and 121% in 12 months. Many investors are of the opinion that the company could split stock again very soon."
"Thanks to the growing demand for its custom AI chips, Broadcom has seen an impressive rise in revenue and expects the AI revenue to be over 60% in the next financial year. The business is driven by four major customers, including Meta Platforms Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL), OpenAI, and ByteDance. But it has the potential to sign more customers and increase spending besides these four."
Stock splits often attract retail investors by lowering per-share prices while increasing share counts, boosting accessibility without changing company fundamentals. Lower per-share prices can create a perception of value, but investors should avoid chasing splits solely for that reason and instead invest in stocks they already follow. Broadcom completed a 10-for-1 split in 2024 and has since surged, trading around $364 and rising 56% year-to-date and 121% over 12 months. Growing demand for Broadcom's custom AI chips is driving revenue, with AI expected to exceed 60% next fiscal year. Major customers include Meta, Alphabet, OpenAI, and ByteDance; Q2 revenue was $15.95 billion.
Read at 24/7 Wall St.
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