Broadcom Stock Splits: Recent Performance and Future Outlook

Broadcom has a history of stock splits, with the most recent one occurring in 2021. The company split its stock 4-for-1, increasing the number of outstanding shares from around 250 million to 1 billion.

This split led to a significant increase in trading volume, with the stock seeing a 300% surge in trading volume in the first week after the split. The increased liquidity made it easier for investors to buy and sell shares.

As a result of the split, the stock price decreased from around $550 to $137.50 per share. This decrease was a direct consequence of the increased number of shares available on the market.

Despite the initial dip, Broadcom's stock has continued to perform well, with a 12-month return of 22%. This growth can be attributed in part to the company's strong financials and steady revenue growth.

Additional reading: What Are Stocks and Shares

Broadcom's stock has been on a roll, surging over 13% in Thursday trading after the company delivered stellar results.

The chip maker beat estimates and increased revenue outlook, with second-quarter profits at $10.96 per adjusted share.

Broadcom's revenue for the quarter was a whopping $12.5 billion, a 43% increase from a year ago.

This growth is largely driven by strong demand for data centers, particularly in the artificial intelligence boom.

Revenue from Broadcom's AI products was a record $3.1 billion during the quarter.

The company increased its guidance for fiscal year 2024 to $51 billion consolidated revenue and adjusted EBITDA to 61% of revenue.

Broadcom also announced a 10-for-1 stock split, effective July 15, which is the company's first since merging with Avago Technologies in 2016.

This move comes after Nvidia, the leader in the AI chip space, announced its own 10-for-1 stock split last month.

You might enjoy: Avago Technologies Stock Quote

Broadcom has split its stock before, and it's possible it could happen again. The company executed a 10-for-1 stock split in July, and the stock has soared nearly 30% since then.

There are no rules about how often a company can split its stock, so it's possible Broadcom could do it again in the future. In fact, Tesla executed two stock splits in the two years between August 2020 and 2022.

The stock could eventually warrant another split if it reaches a certain price. Broadcom traded at more than $1,000 per share when it split in July, and if it gets to $350 to $400 per share, it might put a stock split on the table.

Stock splits don't make a stock fundamentally cheaper; they lower the share price by proportionately increasing the total share count. This means that investors should consider a potential stock split a bonus, but not the main reason to buy a stock.

Broadcom's long-term AI upside makes it a compelling investment, so consider a potential stock split a bonus. The company has a strong track record of growth, with revenue increasing 43% from a year ago.

Here are some key points to consider:

Broadcom's stock has seen a significant surge since its last split, with a nearly 30% increase in value, mostly in the past few weeks.

The company's strong performance is largely due to the artificial intelligence boom, which has driven demand for its chips and software. Broadcom's revenue for the second quarter was $12.5 billion, a 43% increase from a year ago.

Here are some key highlights from Broadcom's recent earnings report:

Broadcom's CEO, Hock Tan, attributed the company's success to strong demand for its AI products, which generated a record $3.1 billion in revenue during the quarter. This is a testament to the company's ability to capitalize on the growing demand for AI technology.

A unique perspective: 3m Company Stock Splits