Shares of Super Micro Computer (NASDAQ: SMCI) have been falling lately. Down more than 20% in just the past month, this once-hot artificial intelligence (AI) stock looks like it might have hit a peak. Despite the fact that the company has posted some impressive growth numbers and possesses attractive prospects, investors appear to be hitting the sell button of late.

But could there be a catalyst coming soon for the stock? Earlier this year, Super Micro Computer, also known as Supermicro, announced a significant 10-for-1 stock spilt. It will trade on a post-split basis on Oct. 1, and given how some splits have lifted stocks in the past, could this be a reason to hang on to the stock for the remainder of the year? Could it help rally the AI stock higher?

A stock split helps lower the price of a stock. In theory, it can help make the stock more accessible to a wider pool of investors, particularly those who don't want to own or who can't buy fractional shares of a business.

Continue reading

Source Fool.com