Two of the most influential artificial intelligence (AI) companies recently announced stock splits, which caused their stock prices to skyrocket daily.
It is widely known that a stock split is a boon for stock prices. However, with the recent bull market on the New York Stock Exchange (NYSE), the stock prices of companies that have announced splits are rallying daily, but the intensity of the rally is different this time.
Since completing its recent stock split, Nvidia has surged 12% in the past five trading days. Meanwhile, Broadcom announced its split on June 12, and its shares have jumped 24% over the same period.
As a result, Wall Street investors are on high alert for the next company to announce a stock split. A U.S. investment specialist media, Motley Fool, revealed three companies likely to announce the next stock split on June 18.
MicroStrategy, the company that holds the most Bitcoin in the world, Meta, Facebook’s parent company, and Costco, a leading American retailer.
MicroStrategy closed the market at $1,496 on June 14. The stock price significantly exceeds $1,000, creating a high possibility of a stock split.
The company’s most recent stock split was a 10-to-1 split in July 2002.
Meta closed the market at $503 on June 14. Although it is still in the three-digit range, the demand for a stock split is intensifying.
Since its listing in May 2012, Meta has surged more than 1,200%. It has never split its stock since its listing.
Meta operates social media such as Facebook and is proactive in AI. As a result, the recent surge in stock prices increases the possibility of a stock split.
Like Nvidia and Broadcom, Meta is one of the beneficiaries of AI, so its stock price may surge after the split.
On the other hand, Costco’s stock price hit a record high of $856 on June 14. This is seen as a stage setting for a possible stock split.
Costco has split its stock thrice since its listing, with its most recent split in January 2000.