Broadcom stock split may make it more accessible, but faces challenges and high valuation

From Nasdaq: 2024-07-01 05:49:00

Broadcom’s (NASDAQ: AVGO) share price soared last year and is up over 45% in 2024. A 10-for-1 stock split is set for July 12, making the stock more accessible to investors. The company’s revenue surged 43% in Q2 due to the acquisition of VMware, with AI opportunities driving growth.

Despite the hype around the stock split, Broadcom faces challenges. Its growth heavily relies on the VMware deal, with weak performance in some business segments. The company’s high valuation and potential competition from Nvidia in AI technology are also concerns. Investors should weigh these factors before buying.

While the stock split may not be a major catalyst, long-term investors could consider buying Broadcom. The Motley Fool’s Stock Advisor recommends 10 other stocks for potential high returns. Nvidia, a previous recommendation, had significant growth. Consider the advice of experts and the company’s future prospects before investing $1,000 in Broadcom.



Read more at Nasdaq: Should You Buy Broadcom Stock Hand Over Fist Before Its 10-for-1 Stock Split?