Stocks that have undergone a split are bound to see an inflow of retail investors who want to make the most of the freshly lowered stock prices. While a lower stock price doesn’t mean much, the number of shares issued can be higher. There’s often a rush of investors who jump in after a stock split since it feels like they’re getting a handful of shares for the same amount. Increased accessibility is always a good idea.
While you must not chase a stock only because it has undergone a split, it makes sense to put your money to work if it’s the stock you’ve been eyeing for a while. 2025 hasn’t seen many stock splits, but there are were few in 2024 that made news. Let’s take a look at two split stocks to load up on this month. Maybe it is time to finally hit the buy button.
Broadcom
Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is one of the hottest artificial intelligence stocks right now. The company’s business is performing extremely well and has delivered incredible fundamentals. Broadcom stock went for a 10-for-1 stock split in 2024, and it has been unstoppable since then. Exchanging hands for $364, the stock is up 56% year-to-date and 121% in 12 months. Many investors are of the opinion that the company could split stock again very soon.
Thanks to the growing demand for its custom AI chips, Broadcom has seen an impressive rise in revenue and expects the AI revenue to be over 60% in the next financial year. The business is driven by four major customers, including Meta Platforms Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL), OpenAI, and ByteDance. But it has the potential to sign more customers and increase spending besides these four.
In the second quarter, Broadcom reported a 22% year-over-year jump in revenue to $15.95 billion and an EPS of $1.69. Its free cash flow margin is 44%, while the operating margin is 36.9%. The impressive numbers are not limited to a single quarter; the company’s long-term performance has been incredible. It reported over 20% compounded annual growth in sales over the last five years.
AVGO is a dividend stock and has a yield of 0.65%; investors can expect a dividend increase later this year. With free cash flow booming, it shouldn’t come as a surprise to see Broadcom increase dividends significantly.
Broadcom has had a solid quarter, and analysts are bullish on the stock. If the stock crosses $400, it might announce a stock split, but it may be less dramatic, such as 2-for-1. The company’s long-term potential makes it an attractive investment.
Super Micro Computer
Super Micro Computer Inc. (NASDAQ: SMCI) is another hot stock in the market. It announced a 10-for-1 stock split in September. The stock has seen a significant rise since and is exchanging hands for $45, up 51% year-to-date.
Super Micro Computer has seen massive interest due to NVIDIA Corp. (NASDAQ:NVDA). An early leader in the AI industry, Supermicro manufactures data center storage systems and servers for AI and other computing workloads.
It has captured the attention of investors, driven by the recent announcement of volume shipments of Nvidia’s Blackwell Ultra system. The company has started volume shipments of NVIDIA HGX B300 systems and NVIDIA GB300 NVL72 across the world. Its partnership with Nvidia is a key driving force and has helped the business grow significantly. As Nvidia chips become more widely available, revenue could accelerate.
For the fourth quarter, the company announced a revenue of $5.8 billion and a net income of $195 million. Unfortunately, the company missed the consensus sales estimate in the quarter and cut the 2026 outlook. The management has a cautious outlook for revenue growth and margins.
There’s optimism about AI data center solutions, but the company is aware of the competitive landscape and the changing product mix. The management has also acknowledged production constraints and customer delays, which had an impact on the revenue.
However, I think SMCI is set to benefit from the AI revolution and could continue reporting outstanding performance in the near future. The stock looks undervalued to me and could soar higher in the near term.
Top Gaining Stocks
Top Losing Stocks