2 Tech Giants Might Emulate Nvidia's AI Stock Split: Prediction

Published Date: 12/08/2024

Artificial intelligence stocks have been on a tear, with Nvidia, Broadcom, and Super Micro Computer splitting their stocks after massive gains. Which AI companies will be next?

Artificial intelligence (AI) has been a powerful catalyst in the stock market, driving significant gains for companies like Nvidia, Broadcom, and Super Micro Computer. Since January 2023, shares of these companies have advanced 615%, 165%, and 520%, respectively. This price appreciation has compelled all three companies to split their stocks.

  The next AI companies to announce splits in 2024 could be Microsoft (NASDAQ  MSFT) and ServiceNow (NYSE  NOW). Their stocks have advanced 70% and 109%, respectively, since January 2023, and shares would be more accessible to the average investor if both companies followed the example set by Nvidia, Broadcom, and Supermicro.

  Historically, companies have beaten the S&P 500 (SNPINDEX  ^GSPC) during the 12 months after announcing a stock split. However, whether Microsoft and ServiceNow split their stocks or not, investors need to do their homework before purchasing shares.

  Microsoft is a leader in the AI space, with its Azure cloud platform and AI-powered tools like GitHub and LinkedIn. The company has a strong track record of innovation and has been investing heavily in AI research and development.

  ServiceNow, on the other hand, is a cloud-based software company that uses AI to power its IT service management platform. The company has seen significant growth in recent years, and its stock has been on a tear.

  While a stock split can make shares more accessible to investors, it's essential to remember that it's not a guarantee of future success. Investors need to evaluate the company's financials, management team, and competitive position before making a decision.

  In conclusion, while Microsoft and ServiceNow may be the next AI companies to announce stock splits, investors need to do their due diligence before investing in these companies.

    Information 

 Microsoft is a technology company that develops, manufactures, licenses, and supports a wide range of software products, services, and devices. The company is headquartered in Redmond, Washington, and is one of the largest and most successful companies in the world.ServiceNow is a cloud-based software company that provides a range of IT service management tools and platforms. The company is headquartered in Santa Clara, California, and has seen significant growth in recent years.Microsoft (NASDAQ  MSFT) is a technology company that develops, manufactures, licenses, and supports a wide range of software products, services, and devices.

FAQS:

 Q  What is a stock split?

  A  A stock split is a corporate action that increases the number of shares outstanding while reducing the par value of each share.

  Q  Why do companies split their stocks?

  A  Companies split their stocks to make shares more accessible to investors and to increase liquidity.

  Q  What are the benefits of a stock split?

  A  A stock split can make shares more accessible to investors, increase liquidity, and potentially drive up the stock price.

  Q  What are the risks of investing in AI stocks?

  A  Investing in AI stocks carries risks, including market volatility, competition, and regulatory uncertainty.

  Q  How can I evaluate the financial health of a company?

  A  You can evaluate the financial health of a company by reviewing its income statement, balance sheet, and cash flow statement.

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