Imminent Stock Splits: 3 AI Companies to Watch
Published Date: 22/08/2024
Meta Platforms, KLA Corporation, and Arista Networks are three AI-related stocks that could be next to split their shares, following recent surges in their stock prices.
The past few months have seen a surge in artificial intelligence (AI)-related technology companies announcing stock splits. With the Nasdaq recovering from its late-July slump, even more AI-related stocks are seeing their share prices soar. Here are three AI stocks that could be next to split their shares.
Meta Platforms (NASDAQ META) is one company that could be a candidate for a stock split. Despite its enormous size, the company was able to grow daily active people by 7% in the second quarter, while increasing revenue by 22% and operating income by 58%. With its share price already north of $525 per share and a reasonable valuation at 26 times earnings, a stock split may be in the near future.
KLA Corporation (NASDAQ KLAC) has seen its stock surge in anticipation of an artificial intelligence investment boom. As the dominant player in process control equipment, KLA seems set for growth as leading-edge AI chips and memory become more complex. With a dominant market share in the metrology and inspection end market, KLA has high margins and free cash flow, making it ripe for a stock split.
Arista Networks (NYSE ANET) is another company that could split its shares soon. At $350 per share, Arista may not undergo a 10-for-1 stock split like some of its tech peers, but it could split 2 or 3 for 1. With a bright future ahead, expect Arista to continue riding the AI wave higher, and for a potential eventual stock split.
These three companies have seen significant growth and have high profit margins, making them potential candidates for a stock split. However, it's essential to remember that a stock split doesn't change the intrinsic value of a stock. In conclusion, while a stock split is not a guarantee, these three AI-related stocks have the potential to split their shares soon. With their high growth rates and profit margins, they are well-positioned to take advantage of the AI boom.
FAQS:
Q What is a stock split?
A A stock split is a corporate action where a company divides its existing shares into a larger number of shares, usually to make the stock more affordable for retail investors.
Q Does a stock split change the intrinsic value of a stock?
A No, a stock split does not change the intrinsic value of a stock.
Q Which companies have recently announced stock splits?
A Several companies have recently announced stock splits, including Lam Research and Nvidia.
Q What is the benefit of a stock split for a company?
A A stock split can make a company's stock more attractive to retail investors and employees who may not have been able to afford the stock at its previous price.
Q How often do companies split their stock?
A Companies split their stock at varying frequencies, but it is generally not a common occurrence." "Q: What is a stock split?
A: A stock split is a corporate action where a company divides its existing shares into a larger number of shares, usually to make the stock more affordable for retail investors.
Q: Does a stock split change the intrinsic value of a stock?
A: No, a stock split does not change the intrinsic value of a stock.