Only six months into 2024, investors have gotten a front row seat to a number of stock splits . Walmart completed a split earlier this year, while Chipotle shareholders recently approved a 50-for-1 split set to occur very soon. Among prominent stock-split stocks, two in particular stick out.
Semiconductor behemoth Nvidia ( NVDA 0.25% ) recently completed a 10-for-1 split in early June . Around the same time, Virgin Galactic ( SPCE 1.
95% ) executed a 1-for-20 reverse stock split . Let's explore which of these companies looks like a terrific opportunity for long-term shareholders and which one investors are best off avoiding. 1.
The stock-split stock to buy and hold for decades: Nvidia I'd argue that Nvidia is the hottest stock in the market right now. The company has earned widespread praise from retail and institutional investors alike thanks to the company's impressive momentum in the artificial intelligence (AI) market. NVDA Revenue (Quarterly) data by YCharts As the chart above illustrates, Nvidia's financial profile was relatively steady -- if not somewhat mundane -- for nearly a decade.
However, as interest in AI started to become more mainstream over the last 18 months or so, Nvidia's business experienced an abnormally bullish influx. Nvidia specializes in graphics processing units (GPU) and data center services -- each of which plays an important role in the development of generative AI applications. Unsurprisingly, as Nvidia's business has ballooned, so has its stock .