Three stocks with significant upside potential due to recent stock splits, with varying outlooks from analysts.
From Nasdaq: 2024-10-17 05:06:00
The two-year bull market on Wall Street is partially due to excitement over artificial intelligence (AI) and stock-split euphoria. Stock splits allow companies to adjust share price and outstanding share count. Forward splits, which lower share prices, are preferred, while reverse splits are avoided. Several brand-name companies have recently completed stock splits, with varying outlooks based on analysts’ price targets.
Nvidia, the leader in the AI revolution, saw a 10-for-1 forward split in June. Analyst Hans Mosesmann predicts a 45% return to $200 per share, making Nvidia a nearly $5 trillion business. High demand for Nvidia’s H100 GPU has increased prices and boosted adjusted gross margin. Competition and potential bubble-bursting concerns could impact future growth.
Sirius XM Holdings completed a reverse split (1-for-10) and could see a 60% upside, reaching $43 per share. A legal monopoly and subscription-driven revenue model set Sirius XM apart, with subscriptions making up close to 77% of net sales. Historically cheap valuation may appeal to long-term investors, despite recent subscriber declines.
Super Micro Computer, a provider of customizable servers for high-compute data centers, saw a 10-for-1 forward split. Analyst Ananda Baruah predicts a 111% upside potential to $100 per share. Allegations of accounting manipulation and a delayed annual report filing raise concerns, impacting potential future growth.
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Read more at Nasdaq: 3 Stock-Split Stocks That Offer Up to 111% Upside, According to Select Wall Street Analysts