Broadcom(US:AVGO) The Motley Foolยท2024-06-26 08:45Core Viewpoint - The article discusses the trend of stock splits among tech companies, highlighting Super Micro Computer as a potential candidate for a stock split due to its significant revenue growth driven by AI demand [1][2][3]. Group 1: Stock Splits in the Tech Industry - Stock splits have become common among tech companies, with Nvidia and Broadcom recently announcing 10-for-1 splits to make shares more accessible to investors [1]. - The trend indicates strong market performance and investor confidence in these companies [1]. Group 2: Super Micro Computer's Performance - Super Micro Computer has seen its stock price increase over 4,000% in the past five years, currently trading above $800, having previously surpassed $1,000 earlier this year [3][4]. - The company reported its first $3 billion quarter this year, a significant increase from its total revenue of $3 billion in 2021 [4]. Group 3: Future Growth Potential - The AI market is projected to grow from $200 billion today to over $1 trillion by the end of the decade, indicating substantial future demand for Super Micro's products [5]. - Super Micro's collaboration with Nvidia and other chip leaders allows for rapid integration of the latest technologies into its offerings, enhancing its competitive edge [5]. Group 4: Liquid Cooling Technology - Super Micro's products feature liquid cooling technology, crucial for managing heat in AI data centers, with expectations that 15% of shipped racks will include this technology this year, increasing to 30% next year [5]. Group 5: Stock Split Implications - A potential stock split by Super Micro could make shares more accessible to a broader range of investors and signal management's confidence in the company's future [6]. - The article suggests that investors should consider buying Super Micro shares now rather than waiting for a potential split, as the split itself does not fundamentally change the company's valuation [7].