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3 Stock-Split Stocks to Buy Before They Soar as Much as 215%, According to Select Wall Street Analysts
AVGOBroadcom(AVGO) The Motley Fool·2024-10-06 09:03

Core Viewpoint - Stock-split stocks tend to outperform the broader market, with an average stock price gain of 25% in the year following the announcement, compared to 12% for the S&P 500 [1] Group 1: Broadcom - Broadcom reported a 47% year-over-year revenue increase to 13billioninitsfiscalthirdquarter,withadjustedEPSrising1813 billion in its fiscal third quarter, with adjusted EPS rising 18% to 1.24 [2] - The company raised its full-year revenue guidance to 51.5billion,indicatingnearly4451.5 billion, indicating nearly 44% growth [2] - A 10-for-1 stock split occurred in July, and the stock has more than tripled since the start of 2023, with a potential upside of 36% according to analyst Hans Mosesmann, who has a price target of 240 [3][4] Group 2: Nvidia - Nvidia's fiscal 2025 second quarter revenue surged 122% year-over-year to 30billion,withdilutedEPSincreasing16830 billion, with diluted EPS increasing 168% to 0.67 [5] - The data center segment, which includes AI chips, saw a revenue increase of 154% to 26.3billion[5]Nvidiasstockhasrisen75426.3 billion [5] - Nvidia's stock has risen 754% since the start of 2023, and analysts predict a potential upside of 85%, with a price target of 200 [6][7] Group 3: Super Micro Computer - Super Micro Computer achieved record revenue of 5.3billioninitsfiscal2024fourthquarter,a1435.3 billion in its fiscal 2024 fourth quarter, a 143% increase, with adjusted EPS rising 78% to 6.25 [8][9] - The company completed a 10-for-1 stock split recently, and despite facing scrutiny from a short report, analyst Hans Mosesmann maintains a buy rating with a price target of $130, representing a potential upside of 215% [10][11] - Supermicro controls 70% to 80% of the direct liquid cooling market, which is crucial for AI applications [8]