Stock splits are popular with investors. They make shares more affordable, and can also spotlight quality stocks. That’s because splits are only necessary after substantial and sustained share price appreciation, which itself is often indicative of a company with solid financials and compelling growth prospects.
Nvidia (NASDAQ: NVDA) is an excellent example. The Wall Street Journal has described the chipmaker as “almost invincible” because it possesses a durable competitive advantage spanning superior hardware and a robust suite of supporting software. Nvidia shares have surged 780% since January 2023 amid unprecedented demand for artificial intelligence processors.
The company reset its soaring share price with a 10-for-1 stock split in June, its second split in three years. And Wall Street remains bullish. The stock carries a median 12-month price target of $144 per share, implying 12% upside from its current share price of $128. But certain analysts see more upside in two other stock-split stocks.
Broadcom (NASDAQ: AVGO) announced a 10-for-1 stock split in June 2024 and executed the split in July 2024. Hans Mosesmann at Rosenblatt Securities recently raised his price target to $240 per share, implying 50% upside from its current share price of $160.
Celsius (NASDAQ: CELH) announced a 3-for-1 stock split in November 2023 and executed the split that same month. Gerald Pascarelli at Wedbush Securities recently lowered his price target from $85 per share to $83 per share, but the new estimate still implies 112% upside from the current share price of $39.
Here’s what investors should know about Broadcom and Celsius.
Broadcom: 50% implied upside
Broadcom specializes in semiconductors and infrastructure software. It is the market leader in data center networking chips and application-specific integrated circuits (ASICs), custom silicon built for specialized use cases like artificial intelligence (AI). For instance, Broadcom helps Alphabet‘s Google and Meta Platforms design custom AI processors, and it recently won a third major customer that Reuters identified as TikTok…
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