AI Stocks Thrive with Multiple Upcoming Stock Splits

A report highlights the impact of stock splits among AI companies like Nvidia and Broadcom on the market. With ASML and Equinix poised for potential splits, the overall bullish sentiment surrounding AI stocks could influence investor behavior and stock prices significantly.

Date: 22-09-2024

AI Rating: 7

The report discusses the current bullish trend in artificial intelligence (AI) stocks, particularly focusing on several significant stock splits executed by key players like Nvidia, Broadcom, Super Micro Computer, and Lam Research. Stock splits are typically welcomed by investors as they can lead to increased share price momentum.

While ASML is cited for its potential to initiate a stock split due to its high share price of approximately $800 and its leading position in lithography equipment, the report states that ASML hasn't performed a traditional stock split since 2000. The company’s robust market cap exceeds $300 billion, making it a prime candidate for such corporate actions.

On the other hand, Equinix, recognized as the largest data center REIT, has also indicated possible plans for a stock split, particularly as its share price approaches $1,000. Their performance includes a reported revenue increase of 7% in Q2 totaling $2.2 billion and first-ever EBITDA exceeding $1 billion at $1.04 billion.

Equinix's growth potential is tied notably to its ongoing expansions with 54 major projects in progress, aimed at supporting AI workloads, which further enhances its attractiveness to investors.

Although neither ASML nor Equinix provided figures directly indicating earnings per share (EPS), net income, or profit margins, the report's overall perspective on possible stock splits suggests a generally positive outlook surrounding these firms. The indication that a split might follow strong performance metrics offers a favorable signal to investors.

Stocks: NVDA AVGO ASML EQIX