Stock-Split Watch: 2 Artificial Intelligence (AI) Stocks That Look Ready to Split
Stock splits are back in the spotlight after Nvidia took this step recently. Investors should remember that this is simply a cosmetic move that doesn't change the value and fundamentals of a company. What a stock split does is increase the number of outstanding shares while reducing the price of each share. So, the overall market value of the company remains the same.
However, there is a belief that a stock split might increase demand for a company's shares because more investors would be able to buy them, with each share now available at a lower price.
That's probably one reason why the likes of Super Micro Computer (NASDAQ: SMCI) and ASML Holding (NASDAQ: ASML) could consider splitting their shares. Let's check why these two companies, which are playing a crucial role in the artificial intelligence (AI) revolution, look ripe for a stock split.
Source Fool.com
