The artificial intelligence revolution has caused a growth surge for the technology’s enablers, most of which reside in the semiconductor sector. The stock movements for these companies have been so strong that many now trade at very, very high stock prices, setting these AI beneficiaries up for a potential stock split. In fact, AI darling ( ) just announced a 10-for-1 split during its first-quarter earnings call.
Stock splits don’t create or destroy any value on their own. After all, if a company has twice as many shares but half the stock price, the company’s total market cap remains the same. However, stock splits can help certain people afford shares if they don’t have a broker that allows fractional share buying.
Moreover, splits can increase a stock’s liquidity, which can help lower-bid-ask spreads for trading purposes, and therefore attract larger funds to a stock. Therefore, even though the following four stocks have already had very strong runs, a split could potentially drive these AI winners to even further upside. 1.
Super Micro Computer One AI stock that has had even better returns than Nvidia over the past three years is . Sure, a lot of Super Micro’s recent success is owed to Nvidia’s AI chips, but SMCI’s returns in the stock market have actually been far superior. Since July 2021, the last time Nvidia split its stock, Nvidia is up by five times.
But Super Micro’s stock has increased a whopping in less than three years. As a result, Super Micr.
