Broadcom's stock will undergo a 10-for-1 split on July 12, historically outperforming post-split

From NASDAQ MarketSite: 2024-07-11 04:15:00

Broadcom shares surged 106% in the past year as investors recognized its potential in powering AI workloads. The company will undergo a 10-for-1 stock split on July 12, with shares trading on a split-adjusted basis on July 15. Historical data suggests that stock-split stocks tend to outperform the S&P 500.

Broadcom is a leader in custom AI chips, holding 80% market share in networking chips and providing application-specific integrated circuits. The company reported strong quarterly results, driven by demand for AI products and VMware. Wall Street expects Broadcom to grow adjusted earnings per share at 24% annually through fiscal 2025, making its current valuation reasonable.

Investors considering Broadcom should note that the Motley Fool Stock Advisor team did not include it in their list of top 10 recommended stocks. They identified other potential high-return stocks. However, patient investors may find Broadcom’s position in the AI market and projected growth rates attractive for long-term investment.



Read more at NASDAQ MarketSite: Broadcom Will Execute Its 10-for-1 Stock Split on July 12. History Says the AI Semiconductor Stock Will Do This Next.