These Could Be the Next Monster AI Stock Splits After Nvidia
Why might Broadcom be considered a potential candidate for a future stock split?
Broadcom might be considered a potential candidate for a future stock split due to its high stock price, which currently hovers around $1,440. This price is well above Nvidia's share price when it conducted a 10-for-1 stock split. Although Broadcom's management has not hinted at a stock split, the timing could be right for one, especially considering the strong demand for the company's networking products in AI data centers. A stock split could make Broadcom's shares more accessible to ordinary investors, which in turn could potentially boost demand for the stock.
How does Broadcom's recent product launch impact the AI networking landscape?
Broadcom's recent product launch of highly-scalable, high-performing, low-power 400G PCIe Gen 5.0 Ethernet adapters is expected to revolutionize the AI networking landscape. This new portfolio is designed to resolve connectivity bottlenecks as XPU bandwidth and cluster sizes grow rapidly in AI data centers4. Broadcom's networking products are experiencing strong demand in AI data centers, and the introduction of these new ethernet adapters specifically designed for AI infrastructure further solidifies the company's position in the market.
The new adapters are built with 5nm process technology, enabling the most power and thermally efficient design in the market. They can drive passive copper cables up to five meters or ultra-low power linear pluggable optics transceivers, and are combined with Broadcom's high-radix Ethernet switches to deliver higher rack density using mainstream air-cooling technology. This launch demonstrates Broadcom's commitment to fostering a power-efficient and highly connected data center for the AI ecosystem.
In summary, Broadcom's recent product launch is expected to significantly impact the AI networking landscape by providing highly efficient, high-performance connectivity solutions specifically designed for AI infrastructure, addressing the growing demand for higher data transfer speeds in AI networks5.
What prompted Nvidia to conduct a 10-for-1 stock split on June 7, 2024?
Nvidia conducted a 10-for-1 stock split on June 7, 2024, to make stock ownership more accessible to employees and investors. The company believed that the stock split would make each share more affordable, which could have a positive psychological effect on retail investors. The move followed a similar trend among other major companies, such as Alphabet, Amazon, and Tesla, which also orchestrated stock splits in 2022.