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AI Chip Leaders Nvidia and Broadcom Soar After 2024 Stock Splits
21 Jul
Summary
- Nvidia and Broadcom completed stock splits in 2024 to make shares more accessible
- Nvidia's Blackwell chip generated $11 billion in revenue in its first quarter
- Nvidia and Broadcom stocks have gained over 40% and 100% respectively since 2023
Last year, two major technology companies, Nvidia and Broadcom, completed stock splits to make their shares more accessible to a broader range of investors. Nvidia, the world's top AI chip designer, and Broadcom, a networking industry leader, both saw their stock prices surge by over 100% and 200%, respectively, in 2023.
The stock splits, which occurred in June and July 2024, enabled these companies to bring down their soaring share prices to more reasonable levels. Nvidia's 10-for-1 split, for example, reduced its share price from around $1,200 to $120. Despite the splits, both companies have continued to see strong demand for their products and services.
Nvidia, in particular, has benefited from the ongoing high demand for its graphics processing units (GPUs) and AI chips. The company's recent launch of its Blackwell architecture and chip was met with "insane" demand, generating $11 billion in revenue in its very first quarter of commercialization. Nvidia has maintained a gross margin above 70%, ensuring high profitability on these sales.
As a result of these strong performances, Nvidia and Broadcom's stocks have experienced significant gains since their respective stock splits, with Nvidia's stock rising more than 40% and Broadcom's stock surging by about 100%.
