Semiconductor giants Nvidia and Lam Research have approved stock splits, sparking speculation in the industry.

From Nasdaq: 2024-05-30 15:07:32

The semiconductor industry is booming, with top companies like Nvidia and Lam Research approving stock splits to attract more investors. Broadcom and ASML are potential candidates for splits due to their high share prices. Broadcom’s CEO’s compensation is tied to stock performance, creating incentive for a split. Analysts are bullish on both companies’ growth potential.

Broadcom Inc. (AVGO) is a key player in semiconductors with a market cap of $644.5 billion and strong financial performance. The company hasn’t split its stock since 2010, but recent acquisitions and earnings growth make it an attractive investment. CEO Hock Tan’s compensation package is tied to the stock price hitting designated milestones by 2025.

ASML Holding N.V. (ASML) dominates the lithography market and is a valuable tech company in the semiconductor sector. The stock has outperformed the wider market, and there’s speculation about a potential split to make shares more accessible. ASML reported impressive financials in Q1 2024, maintaining a positive outlook for the year. Despite challenges, the company remains confident in its growth trajectory.

Nvidia’s recent stock split has sparked speculation about other semiconductor companies following suit, with Lam Research already on board. While Broadcom and ASML are potential candidates for splits, investors are advised to consider their strong financials and growth potential regardless. The semiconductor industry continues to thrive, driven by advancements in AI, cloud computing, and cutting-edge technologies.



Read more at Nasdaq: 2 Semiconductor Giants That Could Follow Nvidia With a Stock Split