Stock Splits Surge: Nvidia, Sirius XM, and Supermicro Show Upside

A recent report highlights the renewed interest in stock splits, which often follow strong financial performance. Companies like Nvidia, Sirius XM, and Supermicro have impressive potential upside thus attracting investor interest despite challenges.

Date: 22-09-2024

AI Rating: 8

Earnings Performance

Nvidia has shown strong earnings growth, with its fiscal 2025 second quarter revenue soaring by 122% year over year to $30 billion and diluted earnings per share (EPS) increasing 168% to $0.67. This remarkable financial performance draws potential investor interest and indicates a continued upward trend.

Super Micro Computer

Super Micro Computer reported a record revenue surge of 143% year over year, amounting to $5.3 billion, along with an adjusted EPS jump of 78% to $6.25 in its fiscal 2024 Q4. These figures signal strong operational capability and market demand, particularly driven by AI advancements.

Revenue Growth

Nvidia: Revenue increased 122% year over year.
Super Micro Computer: Revenue surged by 143% year over year.

Overall Market Outlook

While Sirius XM's revenue slipped 3% year over year, it is important to note that analysts believe the decline is an overreaction to a fundamentally sound business, which may see recovery soon. On the contrary, Nvidia and Super Micro Computer have demonstrated impressive revenue growth metrics, reflecting market demand that supports their stock performance.

Stock Price Potential

Analysts posit substantial upside potential for these stocks:

Nvidia: Potential gains of 82% in the coming years.
Sirius XM: Implied upside of 179% based on analyst targets.
Super Micro Computer: Implied upside of a remarkable 243% according to analysts’ price targets.

Stocks: NASDAQ:NVDA NASDAQ:SIRI NASDAQ:SMCI