Stocks of Nvidia, Broadcom, and Super Micro may split; Microsoft and ServiceNow could follow.

From Nasdaq: 2024-08-11 04:10:00

Artificial intelligence has driven significant stock market gains since January 2023, with Nvidia, Broadcom, and Super Micro Computer seeing increases of 615%, 165%, and 520%, respectively, leading to stock splits. Microsoft and ServiceNow could be next to split, with stocks up 70% and 109%, offering more accessibility for investors.

Microsoft, a major player in software and cloud services, has strengthened its position with generative AI tools like Copilot for Microsoft 365 and Azure AI services. Financial results were solid in the most recent quarter, but the stock’s current valuation at 34 times earnings may be considered expensive by some investors.

ServiceNow, known for workflow management software, has seen success with generative AI tools and strong financial performance, beating expectations in the second quarter. The company’s valuation at 64.5 times adjusted earnings may appear high, but analysts expect 20% annual growth through 2025.

When considering investing in Microsoft, investors should weigh the potential returns against other recommended stocks. The Motley Fool Stock Advisor team has identified 10 stocks with strong growth potential, including Nvidia which made significant returns. The service offers guidance on building a successful portfolio, with a track record of outperforming the S&P 500.



Read more at Nasdaq: Stock Split Prediction: 2 Artificial Intelligence (AI) Stocks Will Split After Nvidia, Broadcom, and Super Micro