Should You Buy Super Micro Computer Before its Upcoming Stock Split? Here's What History Says.
Super Micro Computer (NASDAQ: SMCI), one of the Nasdaq's best performers this year, is offering investors a golden opportunity. The high-flying stock that even beat the first-half performance of market darling Nvidia, is splitting its stock in a few weeks. The idea is to lower the per-share price, making the stock more accessible to a broader range of investors.
This technology giant has soared over the past five years, advancing more than 2,200%, as it became a favorite of artificial intelligence (AI) customers. Companies focused on AI have been putting in their orders for Supermicro's equipment, such as servers and full rack scale solutions, for their data centers. And this has helped the 30-year-old Supermicro report higher revenue in the latest quarter than it reported for the entirety of the 2022 fiscal year. The momentum continues, with the company forecasting as much as 230% revenue growth in the next quarter.
Considering all of this, Supermicro makes a great addition to any growth portfolio. But now the question is should you buy the stock before the upcoming split or wait? Let's take a look at what history says.
Source Fool.com