Core Insights - Stock splits can generate investor interest and create buzz around a stock, but they do not change the underlying fundamentals of the company [1][2] - The performance of stocks post-split can vary significantly, as seen with Nvidia, Broadcom, and Palo Alto Networks [2] Nvidia - Nvidia executed a 10-for-1 stock split on June 10, 2024, granting shareholders 10 shares for every one share owned [4] - Since the split, Nvidia's stock has experienced volatility, falling by as much as 22% and rising by 24% at different points [5] - Despite the stock's sideways movement, Nvidia's fundamentals have improved significantly, with a current P/E ratio of 40x, lower than its five-year average of 80x [6][7][9] Broadcom - Broadcom announced its first-ever stock split on a 10-for-1 basis on July 15, 2024, following a pre-split price of around $1,500 per share [10] - The stock has gained approximately 18% in the 10 months since the split, although it faced a 45% decline in value during a sell-off in AI stocks [11][12] - Analysts forecast a 36% profit growth for Broadcom this year, with a forward P/E ratio of 30, suggesting potential for long-term gains despite current high valuations [13][14] Palo Alto Networks - Palo Alto Networks announced a 2-for-1 stock split on November 20, 2024, after a 181% surge in stock price [15][16] - Since the split, the stock has declined by approximately 7%, attributed to market volatility and high valuations [17][18] - The current P/E ratio stands at 58 times 2025 earnings estimates, indicating that while long-term growth is expected, the stock may be overvalued in the short term [19][20]