2 Recent Artificial Intelligence (AI) Stock-Split Stocks to Buy During the Nasdaq Sell-Off

The recent volatility in the Nasdaq Composite Index (IXIC) has stirred discussions among investors, particularly regarding the potential of artificial intelligence (AI) stocks. As the market experiences a sell-off, it's crucial to evaluate which stocks could provide opportunities for growth, especially those that have recently undergone stock splits. This article will analyze the potential short-term and long-term impacts of investing in AI-related stocks that have split recently.

Understanding Stock Splits and Their Significance

A stock split occurs when a company divides its existing shares into multiple new shares to boost the liquidity of trading in its stock. For example, in a 2-for-1 stock split, a shareholder who owned one share at $100 would now own two shares at $50 each. While the overall value of the investment remains unchanged, stock splits often attract more investors due to the lower price per share, which can lead to an increase in demand and, subsequently, a rise in stock price.

Historically, similar events have shown that stock splits can lead to positive short-term and long-term impacts on stock performance. For instance, after the Apple Inc. (AAPL) 4-for-1 stock split on August 31, 2020, the stock price continued to rally, gaining over 28% in the following months.

Recent Developments in AI Stocks

Recent sell-offs in the Nasdaq have particularly affected technology stocks, leading to potential buying opportunities. Here are two AI stock-split stocks that investors should consider:

1. NVIDIA Corporation (NVDA)

Stock Split: 4-for-1 split on July 20, 2021

NVIDIA has been at the forefront of AI development, providing GPUs that are essential for machine learning and data processing. Despite the recent volatility, NVIDIA's long-term growth prospects remain strong due to its significant investments in AI and data centers.

Short-Term Impact

In the short term, NVIDIA's stock may see increased trading volume and interest due to its lower price post-split. However, if the broader market continues to decline, the stock might face downward pressure.

Long-Term Impact

Long-term investors may benefit from NVIDIA's continued expansion in the AI space. As the demand for AI technology grows, NVIDIA's market position is likely to strengthen, potentially leading to higher stock valuations.

2. Alphabet Inc. (GOOGL)

Stock Split: 20-for-1 split on July 15, 2022

Alphabet, the parent company of Google, has also ventured significantly into AI with initiatives like Google Cloud AI and various machine learning platforms. The stock split has made Alphabet's shares more accessible to a broader range of investors.

Short-Term Impact

Similar to NVIDIA, Alphabet may experience increased liquidity and trading activity post-split. However, the company's performance is also tied to overall market trends and macroeconomic factors, which could impact short-term stock performance.

Long-Term Impact

With its strong focus on AI and data analytics, Alphabet is well-positioned to capitalize on the growing industry. Investors may see considerable returns as the company continues to innovate and expand its AI capabilities.

Conclusion

As the Nasdaq experiences a sell-off, the recent stock splits of companies like NVIDIA and Alphabet present potential buying opportunities for investors looking to take advantage of the AI boom. While the short-term outlook may be influenced by broader market dynamics, the long-term prospects for these companies remain robust due to their strong positions in the AI sector.

Potentially Affected Indices and Stocks

• Indices: Nasdaq Composite Index (IXIC)
• Stocks: NVIDIA Corporation (NVDA), Alphabet Inc. (GOOGL)

Historical Reference

• Apple Inc. (AAPL): 4-for-1 stock split on August 31, 2020, followed by a 28% price increase in the subsequent months.

Investors should carefully assess their risk tolerance and market conditions before making investment decisions. The AI sector is poised for growth, and identifying the right opportunities can lead to significant rewards in the future.