2 AI Companies That Might Follow Nvidia’s Lead and Split Their Stock
Stock splits generate significant buzz in the investment world, especially among amateur investors. While the split doesn’t change the underlying value of the company — one share worth $100 means you’ll own 10 shares worth $10 — the lower per-share price is a buy for smaller investors. Can make it easier. Nvidia recently announced its second stock split in three years, a 10-for-1 split after an extraordinary run. With the AI boom driving many stocks to all-time highs, let’s explore two companies that could be after their stock splits.
Super Micro Computer (NASDAQ: SMCI)
Supermicro computer, commonly known as Supermicro, is a major player in the AI sector, providing critical hardware for data centers, edge computing, and more. Trading above $750 per share, Super Micro’s stock is below its 52-week high of $1,229 but significantly above its 52-week low of $213.
Strong consumer demand driven by AI has driven Super Micro’s revenue and operating income to new heights. In the latest quarter, the company reported a staggering 200% year-over-year sales growth to $3.9 billion. Looking ahead, Super Micro expects continued strong growth next quarter with a forecast of $5.1 billion to $5.5 billion. Importantly, this growth is profitable, as evidenced by rising operating income.
Given the high stock price and ongoing growth, Supermicro may consider a stock split to make the shares more accessible to smaller investors. The move could draw more attention to the company, potentially driving its stock even higher.
ServiceNow (NYSE: NOW)
ServiceNow is at the forefront of automation, providing solutions that drive efficiency in today’s competitive business landscape. Its Now platform offers virtual customer service agents, process automation, and AI-based problem detection, routing, and problem resolution.
Read for more articles visit on world wide galaxy
With a growing customer base of more than 8,100, including 85% of the Fortune 500, ServiceNow has nearly 2,000 major customers who spend an average of $4.6 million annually. The company boasts an impressive 98% renewal rate, highlighting customer satisfaction and loyalty.
ServiceNow’s sales and operating profit are trending upward. The company’s strong financial performance and high stock price suggest it may consider a stock split. Such a move could lower the barrier for small investors and potentially spark new investment inflows.
Conclusion
As the AI boom continues to fuel significant growth in companies like Super Microcomputer and ServiceNow, these high-performing stocks could follow Nvidia’s lead and announce a split. By making their shares more accessible to a wider range of investors, they can maintain their upward momentum and capitalize on the growing interest in AI technologies. Keep an eye on these companies as they navigate the exciting and rapidly evolving AI landscape.