On the Heels of Nvidia's 10-for-1 Stock Split, This Artificial Intelligence (AI) Stock Could Be Next
The advent of artificial intelligence (AI) has been a boon to many companies, but arguably none more so than Nvidia (NASDAQ: NVDA). As the leading supplier of processors used for AI, the company has experienced unprecedented growth. In the company's fiscal 2025 first quarter (ended April 28), Nvidia's revenue grew 262% year over year to $26 billion, while its earnings per share (EPS) soared 629% to $5.98. This marked the fourth consecutive quarter of triple-digit sales and profit growth. This has driven Nvidia's stock price up 650% since the start of 2023.
In conjunction with its financial report, Nvidia announced a 10-for-1 stock split, which will be initiated after the market close on Friday, June 7. The stock will begin trading on a split-adjusted basis beginning on Monday, June 10. Nvidia noted in its announcement that the split was to "make stock ownership more accessible to employees and investors."
From a historical perspective, stock splits follow a period of sustained business and operational performance, which fuels the rising stock price. While this describes Nvidia to a tee, there are other companies benefiting from the proliferation of AI. One such company that could also be poised for a stock split is Broadcom (NASDAQ: AVGO).
Source Fool.com
