The Resurgence of Stock Splits: A Look at Microsoft and Nvidia

One of the intriguing developments in the investing landscape is the return to popularity of stock splits. This article delves into the resurgence of stock splits, driven by the introduction of low-cost and no-cost trading and surging stock prices among elite companies. We will explore two potential candidates for future stock splits: Microsoft and Nvidia. These companies have shown impressive growth, particularly in the field of artificial intelligence (AI), making them strong front-runners in the AI revolution. Let's delve into their success stories and examine the potential for future stock splits.

The Return of Stock Splits

Exploring the resurgence of stock splits and the factors driving their popularity.

Stock splits have made a comeback in recent years, thanks to the introduction of low-cost and no-cost trading options. This has made it easier for retail investors to participate in the market and has fueled the resurgence of stock splits.

Additionally, surging stock prices among elite companies have made their shares unaffordable for many investors. Stock splits help to lower the share price, making them more accessible to a wider range of investors.

Microsoft: A Leader in AI

Exploring Microsoft's growth potential and its position as a frontrunner in the AI revolution.

Microsoft, known for its widely used operating system Windows and Office suite, has also become a leader in the field of artificial intelligence (AI). The company's recent moves in AI, including the integration of AI-based productivity tools and the expansion of AI tools for Azure cloud users, have positioned it at the forefront of the AI revolution.

In its fiscal 2024 first quarter, Microsoft experienced accelerated revenue growth, driven by the success of Azure Cloud, which grew by 29%. The company's strong track record of reliable growth, coupled with the potential of AI, makes it a likely candidate for a future stock split.

Nvidia: Pioneering AI Technology

Examining Nvidia's role in the development of AI technology and its impressive growth in the market.

Nvidia, known for its invention of modern graphics processing units (GPUs), has expanded its technology to cater to the demands of cloud computing and AI systems. With its dominance in the market for processors used in machine learning, Nvidia is well-positioned to capitalize on the growing demand for generative AI.

In its fiscal 2024 second quarter, Nvidia reported record revenue and diluted EPS, driven by the accelerating demand for AI. The company's steady growth, coupled with its significant advancements in AI technology, makes it a potential candidate for another stock split in the near future.