June 12, 2024
Attention investors! The AI revolution is creating significant opportunities, and three key stocks could be gearing up for a stock split. Splits can make high-priced shares more accessible, often leading to a boost in demand and potentially higher stock prices. Let’s take a closer look at Super Micro Computer, Palo Alto Networks, and Broadcom, three AI stocks that might soon split.
Potential Stock Split No. 1: Super Micro Computer
Super Micro Computer (NASDAQ: SMCI) has been on a tear, thanks to its high-performance servers and data storage systems that pair perfectly with Nvidia’s AI chips. In the quarter ending March 31, Supermicro’s sales soared 201% year over year to $3.9 billion, with earnings per share rocketing 329% to $6.56. These numbers highlight its rapid growth and market dominance.
Supermicro’s innovative liquid-cooled AI SuperClusters, designed for Nvidia’s Blackwell AI platform, are driving this success by enhancing AI model training and reducing energy costs. Despite its strong performance, the stock is currently about 37% off its 52-week highs, trading at nearly $800 per share. A stock split could make these shares more affordable and attract a broader range of investors, potentially sparking a rally.
Potential Stock Split No. 2: Palo Alto Networks
Palo Alto Networks (NASDAQ: PANW) is a cybersecurity titan, crucial for protecting data in the AI era. With the global cybersecurity market expected to reach $500 billion by 2030, Palo Alto is well-positioned to benefit. The company’s comprehensive tools, including next-gen firewalls and advanced threat prevention services, cater to a growing demand for robust digital protection.
Palo Alto’s scale, with over 80,000 business customers, allows it to continuously enhance its machine learning technology. Its AI-powered platform quickly updates defenses against new threats, providing significant value to its clients. With shares trading around $300, another stock split could boost demand among retail investors, driving the stock to new highs.
Potential Stock Split No. 3: Broadcom
Broadcom (NASDAQ: AVGO), a giant in semiconductor and infrastructure software solutions, is another candidate for a stock split. Trading at approximately $1,488 per share, Broadcom’s high price tag can be a barrier for individual investors. A split would make its shares more accessible, likely increasing liquidity and attracting more investors.
Broadcom is a critical player in AI infrastructure, providing essential components for data centers and AI applications. Its robust financial performance and strategic position in the tech industry make it a compelling investment. A stock split could further enhance its appeal and support continued stock price growth.
Conclusion
The AI sector is booming, and these three companies—Super Micro Computer, Palo Alto Networks, and Broadcom—are at the forefront. Each has a strong growth trajectory and high share prices that could benefit from a stock split, making their shares more accessible to a wider range of investors. Keep an eye on these stocks, as a split could be the catalyst for their next big move.
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by Steve Macalbry
Senior Editor,
BestGrowthStocks.Com
Disclaimer: This article is intended for informational purposes only. It should not be considered financial or investment advice. We do not hold any form of equity in the securities mentioned in this article. Always consult with a certified financial professional before making any financial decisions. Growth stocks carry a high degree of risk, and you could lose your entire investment.
