Nvidia and Broadcom Completed 10-for-1 Stock Splits. History Says the Artificial Intelligence (AI) Stocks Will Do This Next
UBS analysts estimate that artificial intelligence (AI) spending will approach $1.2 trillion annually by 2027. Semiconductor companies Nvidia (NASDAQ: NVDA) and (NASDAQ: AVGO) have already benefited from that opportunity, and enthusiasm about their ability to monetize AI has driven both stocks higher.
Since November 2022, shares of Nvidia and Broadcom have advanced 765% and 300%, respectively. That period coincides with the existence of ChatGPT, the generative AI application that sparked the spending boom forecasted by UBS.
Both semiconductor companies recently completed a 10-for-1 stock split, the purpose of which was to make shares more affordable. Historically speaking, stock splits have been good news for shareholders. Here's why.
Source Fool.com