In recent years, Wall Street has witnessed a dramatic rise in the popularity of stock-split stocks, especially in the technology sector. Although stock splits do not change the company's market value, they carry emotional significance.

Management usually chooses to split a stock when it believes that the company's share price is overstretched. Hence, post-split, the company's shares become more affordable and enable more investors to pick a stake in the stock. As the stock becomes more attractive to a larger investor base, there is usually a rise in overall trading activity. Frequently, this ultimately translates into an increase in the company's overall market capitalization -- at least in the short run.

Artificial Intelligence (AI) has emerged as the red-hot investment theme of 2023. Unsurprisingly, share prices of some AI stocks have grown through the roof. So, if you are searching for certain high-quality AI stocks that may benefit from a potential stock split, then you may consider picking small stakes in these two stocks.

Continue reading

Source Fool.com