Super Micro Computer is undergoing a 10-for-1 stock split, attracting more investors, but stock has fallen

From Nasdaq: 2024-09-25 05:10:00

Super Micro Computer (NASDAQ: SMCI) is undergoing a 10-for-1 stock split, with shares opening at their split-adjusted price on Oct. 1. Companies like Nvidia, Broadcom, Walmart, and Chipotle have also split their stock this year. Stock splits attract more investors by lowering the share price.

While history shows gains after stock split announcements, the long-term trend depends on a company’s earnings power. Supermicro stock has fallen since its split announcement due to unrelated factors. Investors are advised to focus on a company’s fundamentals rather than timing stock splits for maximum returns.

The Motley Fool Stock Advisor identified the 10 best stocks to buy now, with Super Micro Computer not making the cut. Investors are encouraged to invest in these top stocks for potentially significant returns in the future. Stock Advisor has outperformed the S&P 500 since 2002.



Read more at Nasdaq: Should You Buy Super Micro Computer Before or After Its Stock Split? Here’s What History Says.