Stock-split announcements have surged, with Nvidia and Broadcom already splitting, and Microsoft potentially next

From Nasdaq: 2024-07-21 07:30:00

This year has seen a surge in high-profile stock split announcements from companies like Walmart, Chipotle Mexican Grill, and Lam Research. While stock splits don’t change a company’s fundamentals, they can increase interest in stocks and some research even suggests that split stocks outperform the market. Nvidia and Broadcom have already split this year, with Microsoft potentially following suit. Nvidia’s high valuation signals a caution as its stock price has skyrocketed. Broadcom’s first-ever split comes after significant gains driven by AI technology.

Microsoft, a tech giant with a history of stock splits, may be gearing up for another split soon. The company’s growth in cloud computing and AI has propelled its stock to new heights, making it a potential candidate for a stock split. Analysts predict strong earnings growth for Microsoft, which could further support the case for a split as it would make shares more accessible to investors.

Investors should be cautious when considering investing in Nvidia given its sky-high valuation. The company’s stock price has surged dramatically in recent years, driven by investors paying higher prices for future growth. This risky proposition may not be the best value for investors, and they could be better off looking elsewhere for more favorable investment opportunities.



Read more at Nasdaq: Stock-Split Fever: 2 Recent Stock-Split Stocks and 1 That Could Be Next