2 Artificial Intelligence (AI) Companies That Could Follow Nvidia's Lead and Split Their Stock
Stock splits generate a lot of buzz in the investing world, especially among the amateur crowd. You probably already know that a split doesn't affect the company's underlying value -- if you have one share worth $100 and the company executes a 10-for-1 split, you would have 10 shares worth $10 each for the same $100 value.
However, there are some advantages to shrinking per-share prices. For example, it's easier for smaller investors to accumulate a position. Let's say you put $300 into an account monthly; it's easier to accumulate a position in a stock selling for $100 than $2,000. The announcements also draw attention to the company, which is potentially of help.
Nvidia is the latest big tech company to announce a split (its second in the past three years). The stock split 10-for-1 last week after an incredible run over the previous few years, as shown below. But Nvidia isn't the only company with a swelling stock price. The artificial intelligence (AI) boom sent several other stocks to all-time highs.
Source Fool.com