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2 Stock-Split Stocks to Buy Before 2025
BroadcomBroadcom(US:AVGO) The Motley Foolยท2024-09-22 09:28

Group 1: Stock Splits and Growth Potential - Companies that split their stocks often experience significant growth, making their shares more affordable for investors [1][2] - Stock splits alone are not sufficient reasons to invest; evaluating a company's growth and future opportunities is crucial [2] Group 2: Nvidia - Nvidia has seen a remarkable 24,000% increase in stock price since 2014, with two stock splits in the last five years [3] - The company is facing near-term challenges, including delayed product launches and competition, but its revenue grew 122% year-over-year in the fiscal second quarter [3][4] - Nvidia expects fiscal Q3 revenue to increase approximately 79% year-over-year, driven by the growing demand for AI solutions [4] - Analysts project Nvidia's earnings to rise 40% to $3.99 next year, potentially leading to a stock price of $200 by the end of 2025, representing a 69% upside [4] Group 3: Broadcom - Broadcom has issued a 10-for-1 stock split, positioning itself well for long-term growth in the AI market, with revenue from custom AI accelerators growing over threefold year-over-year [5][6] - The company has a significant partnership with Apple, which is expected to drive growth in its smartphone business [5] - Broadcom anticipates 20% sequential growth in wireless revenue in Q4, supported by strong demand for new iPhones [6] - Analysts expect Broadcom to achieve annualized earnings growth of 19% over the long term, indicating strong potential for returns [6]