The Motley Fool·2025-12-16 08:02Core Viewpoint - The resurgence of stock splits and the impact of artificial intelligence (AI) on the stock market have created significant investment opportunities, particularly in companies like Broadcom and AppLovin, which have shown remarkable stock performance and growth potential [1][2][3]. Group 1: Stock Market Trends - Stock splits are becoming more common again as a strategy to keep high-value stocks accessible to investors [1] - The bull market driven by AI advancements and strong corporate earnings has led major indices like the Dow Jones, S&P 500, and Nasdaq to reach record highs [2] - Historical data indicates that bull markets lasting over three years tend to continue for an average of eight years, suggesting further growth potential [3] Group 2: Broadcom - Broadcom's stock has increased by 337%, driven by the demand for application-specific integrated circuits (ASICs) as alternatives to energy-intensive GPUs [5][6] - The company has secured a multibillion-dollar deal with OpenAI to supply 10 gigawatts of ASICs over the next four years, with expectations of AI-related revenue growth to reach between $60 billion and $90 billion by 2027 [7] - Broadcom's current market cap is $1.6 trillion, with a gross margin of 64.71% and a PEG ratio of 0.43, indicating it may be undervalued despite a high price-to-earnings ratio [9][11] Group 3: AppLovin - AppLovin's stock has surged by 1,780%, attributed to its innovative advertising technology that aids app developers in marketing and monetization [12][13] - The company reported a 68% year-over-year revenue growth of $1.4 billion in the third quarter, with a diluted EPS increase of 96% [15] - AppLovin's market cap stands at $228 billion, with a PEG ratio of 0.63, suggesting it is attractively priced given its rapid growth [15][17]