Reported 7 months ago
Broadcom, the US telecommunications chip giant, announced a stock split of 1:10 effective July 15, coupled with better-than-expected Q2 earnings driven by AI until May 5, 2024, causing its stock price to skyrocket over 15% to a new high of $1,722.21 on the morning of June 13. TSMC seized the opportunity with TSMC concept stocks surging, Entering and Unimicron hit their limit-up prices, and ASE Technology also surged 6.93%. Broadcom's market value approaches $800 billion with a nearly 60% increase in share price for this year so far, and positive expectations for entering the trillion-dollar club eventually. The stock split aims to make it easier for investors and employees to buy Broadcom shares and provide added flexibility for existing shareholders. Analysts suggest that high-priced stock splits often lead to better performance, with an average 25% return after a year for split stocks compared to the S&P 500’s 12% average. Overall, with the boost in AI performance, Broadcom is predicted to continue its positive momentum post-split.
Source: YAHOO