The stock market is red-hot. The S&P 500 crossed 5,000 for the first time ever; the Dow Jones Industrial Average is making new all-time highs regularly.
Meanwhile, the Nasdaq Composite, the most tech-heavy of the major indexes, is riding a wave of artificial intelligence (AI) optimism right into the stratosphere. Over the last 12 months, that index is up 33%.
With so many new highs being made, some stock prices have reached towering heights. So let’s talk stock splits and cover three stocks — Super Micro Computer (NASDAQ: SMCI), Nvidia (NASDAQ: NVDA), and Meta Platforms (NASDAQ: META) — that are ready.
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The hottest AI stock around looks primed for a first-ever split
Jake Lerch (Super Micro Computer): If I had to pick one stock as the mascot for the current bull market, it just might be Super Micro Computer. Its shares generated a mind-blowing total return of 774% in the last 12 months.
To put that in context, it’s taken Microsoft (which is no slouch regarding stock performance) the last eight years to generate a similar total return.
Super Micro Computer’s rapid rise has seen its stock price shoot up from around $86 a share to over $880. That, my friends, is a recipe for a stock split. The company has never conducted a stock split in its 17 years as a public company. However, with its stock price closing in on $900 a share and investor interest surging, it might be time.
SMCI Chart
The company’s near-term prospects look spectacular as the AI revolution drives up demand for its off-the-shelf server racks — one of the primary building blocks for AI data centers. The company reported exceptional earnings results a few weeks ago, lifted its full-year guidance, and provided highly upbeat commentary in a post-earnings conference call.
In short, given the stock’s amazing run, now could be the right time for Super Micro Computer to perform its first stock split — a development many investors would cheer.
AI chip dominance has taken this stock’s share price into the clouds
Will Healy (Nvidia): Amid the generative AI boom, Nvidia has been on a tear….
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