Broadcom Inc. AVGO climbed over 10% since its announcement of a 10-for-1 stock split on June 12.
In less than two weeks, Broadcom (NASDAQ: AVGO ) will split its stock by a 10-to-1 ratio. Shares that currently trade for more than $1,600 each will each be worth about $160 a stub.
Broadcom's (AVGO) strong portfolio and expanding AI offerings make its top-line growth prospects bright.
The tech giant's shares have climbed by almost 90% over the past year. Its 10-for-1 stock split will take place following the close of trading on July 12.
Broadcom generated robust financial results, which got a boost from AI. That company also initiated a high-profile 10-for-1 stock split.
Broadcom plans to conduct a 10-for-1 stock split after the market closes on July 12. Stocks historically perform well after announcing stock splits, and Broadcom has two other major growth drivers.
Broadcom is a key player in AI solutions with diversified offerings, high profitability, and potential for growth in semiconductor products. AI revolution is not the only secular shift that Broadcom can benefit from because it also has strong potential to capitalize on a projected 19.4% CAGR for the IoT industry. Intrinsic value calculations suggest that AVGO is currently trading at a discount, which is quite attractive for such a fundamentally strong company.
I/O Fund analyst Beth Kendig sees 230% upside in Nvidia, and Morgan Stanley analyst Joseph Moore has outlined a bull-case target that implies 70% upside in Broadcom. Nvidia dominates the markets for workstation GPUs, data center GPUs, and AI chips, and its robust ecosystem of supporting software affords the company an advantage.
The S&P 500 closed at a record high seven times in June as a string of earnings reports from the likes of Broadcom (AVGO) and Oracle (ORCL) showed demand for artificial intelligence (AI) and the wares that make it work remained as healthy as ever.
Broadcom delivered monster growth over the last couple of quarters. This was initiated by a major acquisition.
Broadcom recently announced a 10-for-1 stock split. The company continues to deliver strong operational and financial results.
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