From Yahoo Finance: 2024-06-18 05:51:00

Stock-split fever is spreading, with Chipotle, Nvidia, and Broadcom all announcing splits. However, the splits don’t impact the companies’ underlying businesses. Chipotle’s valuation is high, while Broadcom and Nvidia show strong growth potential. Nvidia appears to be the best stock-split pick due to its AI-related growth opportunities.

Chipotle’s high valuation makes it an easy elimination among the three stocks. While the Tex-Mex chain continues to deliver strong growth, its stock trades at nearly 61 times forward earnings. On the other hand, Broadcom and Nvidia show impressive growth, with both companies benefiting from increasing demand for AI products.

Broadcom’s revenue soared 43% year over year, while Nvidia’s revenue jumped 262% in Q1. Both companies are key players in the AI space. While their valuations are not cheap, their growth prospects seem promising. Given the strong growth potential, Nvidia seems to be the best stock-split pick among the three companies.

Before investing in Nvidia, consider expert recommendations. The Motley Fool Stock Advisor team has identified 10 top stocks for investors, with Nvidia not making the cut. The service provides guidance on building a portfolio and has more than quadrupled the return of the S&P 500 since 2002. Overall, Nvidia shows strong growth potential in the AI sector.



Read more at Yahoo Finance: Best Stock Split Buy: Nvidia, Broadcom, or Chipotle?