From NASDAQ: 2024-07-10 05:06:00

The trend of stock splits is gaining popularity on Wall Street alongside artificial intelligence (AI) excitement. Forward stock splits make shares more affordable for investors, while reverse splits aim to boost share price for listing standards. Since 2024, multiple companies have announced splits, with Nvidia’s 10-for-1 split receiving significant attention.

Nvidia’s dominance in AI GPUs has driven its stock split decisions. Demand for its H100 GPU surpasses supply, allowing Nvidia to increase selling prices and boost its adjusted gross margin. The company plans to stay ahead by releasing its next-gen Blackwell architecture and teasing the Rubin GPU architecture by 2026. Nvidia’s split sets a path for others to follow.

Meta Platforms, part of the “Magnificent Seven,” is overdue for its first-ever stock split. Boasting exceptional ad-pricing power, Meta’s success is powered by $58 billion cash reserves and billions generated in cash flow. Microsoft, another member of the “Magnificent Seven,” looks poised to announce a stock split after its last one in 2003. With a strong balance sheet, Microsoft’s focus on Azure drives growth.

Investors looking to capitalize on future growth may look beyond Nvidia. The Motley Fool’s Stock Advisor analysts highlighted 10 promising stocks, excluding Nvidia. The Stock Advisor service aims to guide investors with regular updates and new stock picks each month. With potential for high returns, investing in top-performing stocks could lead to significant gains in the long run.



Read more at NASDAQ: Nvidia Recently Completed a 10-for-1 Stock Split, and These 2 “Magnificent Seven” Members Look Ready to Follow in Its Footsteps