Broadcom may be considering another stock split due to significant growth from focus on AI

From Nasdaq: 2024-12-25 05:30:00

Broadcom, known for its recent stock split, may be eyeing another one soon. The company’s stock has surged 30% post-split. Stock splits don’t impact the company’s value, but they make trading easier for investors and employees. Broadcom’s focus on AI could lead to significant growth, potentially warranting another split if the stock price rises.

Broadcom’s recent developments in AI have sparked investor interest. The company is working on XPU chips for AI inference, targeting a revenue opportunity of $60 billion to $90 billion by 2027. With AI revenue at $12.2 billion in 2024, Broadcom’s growth potential is substantial. The stock’s price growth could prompt another split, enhancing investor accessibility.

Considering Broadcom’s current growth trajectory and reasonable valuation, a stock split might be on the horizon if the stock price continues to rise. A higher PEG ratio and expected earnings growth make Broadcom an attractive investment. The potential for AI-related revenue growth could drive the stock price up further, potentially leading to another split in the future.



Read more at Nasdaq: Stock-Split Watch: Is Broadcom Next?