This could be the next Monster AI stock split after Nvidia

If you would like to purchase Nvidia At a cheaper price, you have the opportunity now. The tech giant went 10 to 1 Stock split After the market closes on June 7, 2024. Nvidia’s stock price is at its lowest level in years.

Who are the AI ​​leaders who could have a major stock split after Nvidia? Here are two top candidates and one specific pick.

1. Broadcom

In one sense, Broadcom (NASDAQ:AFGO) It never split its shares. Avago acquired the “old” Broadcom in 2016 and kept its name. The “old” Broadcom had three stock splits before being acquired. However, Avago never split its stock, and neither did the “new” Broadcom.

Broadcom’s stock price is currently around $1,440. This is much higher than Nvidia’s stock price when it split its stock. Although the company’s management team has not hinted at a stock split yet, the timing could be right for one — perhaps a 10-for-1 split similar to what Nvidia did.

Broadcom’s networking products enjoy strong demand in AI data centers. However, the company is not resting on its laurels. It recently announced a new range of Ethernet switches designed specifically for AI infrastructure. Broadcom believes its latest product launch “revolutionizes the AI ​​networking landscape.”

2. ASML Holdings

ASML Holdings (Nasdaq: ASML) It has conducted five stock splits in its history. This number includes two Reverse stock splitsOne in September 2007 and the other in November 2012.

There is a good case that another traditional stock split is scheduled. ASML’s stock price is above $1,040 and has remained above $800 for most of 2024 so far. However, the company has given no indications that a stock split is in the works.

See also  The report says that Tesla is scooping up a new location in Fremont to expand production of the 4680 battery cell

ASML is the only manufacturer of extreme ultraviolet (EUV) lithography machines used to make the most advanced chips. How important is this feature? Goldman Sachs He believes chips made using UV light “will enable the next wave of artificial intelligence.”

3. LAM Research

L Research (NASDAQ: LRCX) He had two stock splits. However, the most recent – ​​a 3-for-1 split – came in March 2000.

Unlike Broadcom and ASML, Lam almost certainly has a stock split on the way. Last month, the company announced a 10-for-1 stock split scheduled to take place after the market close on October 2, 2024. This split makes a lot of sense given that Lam’s shares are trading at more than $1,000.

LAM is a leading provider of chip manufacturing equipment used in semiconductor manufacturing. The company’s AI edge is in storage. AI applications require fast, high-density storage. Lam’s technology enables the manufacture of enterprise solid-state drives that are 50 times faster and up to five times more energy efficient than hard drives, which currently store more than 80% of enterprise data.

Are these potential stock split candidates buying?

I wouldn’t buy any of these stocks just because of the scheduled (for Lam Research) and potential (for Broadcom and ASML) future stock splits. Stock splits have no impact on the companies’ underlying business or growth prospects.

However, I think these three stocks could deliver impressive gains over the long term as AI continues to drive demand for high-powered chips and the equipment needed to make those chips. Broadcom, ASML, and Lam Research should remain at the forefront of the AI ​​chip market.

See also  Apple is officially the first company in the world to be valued at $3 trillion

To be sure, these three stocks are trading at premium valuations. They can be more volatile than most stocks. However, Broadcom, ASML, and Lam should be good picks for strong growth investors.

Should you invest $1,000 in ASML now?

Before buying shares in ASML, consider this:

the Motley Fool stock advisor The analyst team has just defined what they think it is Top 10 stocks Let investors buy it now… and ASML wasn’t one of them. The 10 stocks that were discounted could deliver huge returns in the coming years.

Think when Nvidia I prepared this list on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $746,217!*

Stock advisor It provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. the Stock advisor The service has More than four times The return of the S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of June 10, 2024

Keith Speights He has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Goldman Sachs Group, Lam Research, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has Disclosure policy.

This could be the next Monster AI stock split after Nvidia Originally published by The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *