Super Micro Computer's Stock Split: A Turning Point for the AI Server Giant?

Is Stock-Split Stock Super Micro Computer Headed to $729 per Share? | The Motley Fool

Super Micro Computer has a 10-for-1 stock split planned for after market close Sept. 30. Companies that decide to split their stock -- increasing share count and decreasing per-share price -- are usually doing quite well. Most companies don't announce stock splits unless their shares have climbed significantly over time. However, there are occasions when a stock split occurs during a rocky period for the company's shares. This is the case for Super Micro Computer (SMCI 3.29%), whose stock is down 35% since its split announcement in early August. Still, many analysts on Wall Street believe there is massive potential for Supermicro. So, is it time to buy? On Sept. 25, a group of 16 analysts had an average one-year price target on Supermicro stock of $729.19. That represents around 60% upside from the stock's closing price on Sept. 25, which was a day before a Wall Street Journal article helped fuel a 12% drop. The optimism makes sense. Super Micro Computer manufactures components for computing servers. While this space is relatively crowded, Supermicro sets itself apart from the competition by offering highly customizable servers that can be tailored to any workload type or size. Its products are also some of the most energy-efficient ones out there, which can save on long-term operating costs. With the massive spike in computing demand caused by the artificial intelligence (AI) arms race, Supermicro is benefiting from the same trends that sent Nvidia stock through the roof, though Supermicro's ride has been a bit more bumpy. Along with Supermicro's 10-for-1 stock-split announcement on Aug. 6, the company released its fiscal 2024 fourth-quarter and full-year results for the period ended June 30. While the company delivered strong revenue growth of 143% year over year and provided excellent full-year 2025 guidance of 74% to 101% growth, there were some problems with its profitability. This has caused significant concern among some investors as falling gross margin can also indicate increased competition. However, management believes its gross margin will recover throughout fiscal 2025. Meanwhile, short-selling firm Hindenburg Research released a report on Supermicro on Aug. 27 alleging accounting manipulation. The SEC has fined Supermicro for accounting issues in the past. At the same time, because Hindenburg is a short-seller, it benefits when the stocks it reports on fall, so investors should proceed cautiously with this information. Supermicro responded that the short report "contains false or inaccurate statements." On Aug. 28, Supermicro delayed filing its end-of-year Form 10-K with the SEC, saying it needed more time to "complete its assessment of the design and operating effectiveness of its internal controls over financial reporting." After the delay, Supermicro received a letter of non-compliance from the Nasdaq exchange, stating it is in violation of listing rules because it hasn't filed its 10-K in a timely fashion. After receiving the letter on Sept. 16, Supermicro has 60 days to comply or risk being delisted. To further complicate matters, on Sept. 26, The Wall Street Journal reported that unnamed sources had said the Department of Justice had launched a probe into the company. If the reporting is correct, this is just a preliminary probe, so nothing may come out of it. However, there could be real issues with the company, which significantly increases the risk of investing in the stock. It will likely be a long time before the public gets full details, so investors will need to stay patient with the stock if they choose to buy it. Clearly, the company is grappling with serious issues right now, and the stock has fallen over 60% from its 52-week high. However, the business case for its components and servers is undeniable. The current stock is also valued fairly cheaply on a forward earnings basis. If Supermicro can improve its gross margin over the next year and dispel concerns over its accounting practices, the stock has a ton of upside. I recently bought the dip because I believe in the company. However, I kept the position size low (around 1% of my total portfolio value). That way, it won't affect the portfolio too much if the stock tumbles further, but I can still benefit if Supermicro stages a recovery like some on Wall Street think it can in the near term. I was planning on buying more, but after the report of a potential DOJ probe, I'm comfortable with the current position size, as it represents the high risk, high reward associated with Super Micro Computer's stock.

Is Nvidia Old News? Meet the Newest Stock-Split AI Stock in the S&P 500. It Soared 470% Since Early 2023.

Super Micro Computer will conduct a 10-for-1 stock split at the end of September. Super Micro Computer (SMCI -12.17%) has been through a whirlwind of ups and downs in recent months. Its stock soared 188% during the first half of 2024 due to excitement about the company's increasingly important role in the artificial intelligence (AI) economy. That run-up helped Super Micro secure a spot in the S&P 500 (^GSPC 0.40%) in March. Tremendous share price appreciation also prompted Super Micro to schedule a 10-for-1 stock split for Sept. 30. The split will occur after the market closes, and shares will begin trading on a split-adjusted basis on Oct. 1. Interestingly, fellow AI company Nvidia also reset its soaring share price with a 10-for-1 stock split earlier this year. However, Super Micro shares started falling when the company reported disappointing earnings in August. The sell-off worsened when Hindenburg Research accused it of wrongdoing later that month, and it worsened again following news of a Justice Department investigation this week. Shares are still up 35% year to date and 470% since January 2023, but the stock is down 65% from its record high. Here's what investors should know. Super Micro is the market leader in artificial intelligence servers Super Micro develops high-performance computing platforms optimized for applications like data analytics and artificial intelligence (AI). Its portfolio includes subsystems, individual servers, and full server racks equipped with compute, networking, and storage to provide clients with a turnkey solution for data center workloads. What sets Super Micro apart are its manufacturing capabilities and modular approach to development. The company handles most production and testing internally at facilities in Silicon Valley, which supports rapid prototyping and product launches. Super Micro also uses common electronic building blocks to quickly assemble a broad range of products featuring the latest chips from suppliers like Nvidia, AMD, and Intel. Rosenblatt Securities analyst Hans Mosesmann highlighted those advantages in a note to clients. "Super Micro has developed a model that is very, very quick to market. They usually have the widest portfolio of products when a new product comes out." Indeed, Super Micro CEO Charles Liang says the company typically beats competitors to market by two to six months. That time-to-market advantage has helped Super Micro secure a leadership position in the AI server market. The company accounted for 10% of AI server sales in 2023, but that figure could reach 17% in 2026, according to Bank of America. That implies rapid revenue growth for Super Micro because AI server sales are forecasted to increase at 30% annually over the next 10 years, according to Statista. Additionally, Super Micro also holds 70% to 80% market share in liquid-cooled servers, according to Charles Liang. Liquid cooling is more efficient that traditional air cooling, so the technology is expected to become increasingly popular as data center chips become increasingly powerful. Leadership in liquid cooling should reinforce Super Micro's strong presence in the AI server market. Super Micro disappointed Wall Street with its fourth-quarter report Super Micro reported mixed financial results in the fourth quarter of fiscal 2024 (ended June 2024). Revenue increased 144% to $5.3 billion on strong demand for AI servers. But gross margin fell about six percentage points to 11.2%, so non-GAAP earnings increased just 78% to $6.25 per diluted share. Investors saw declining margins as a sign Super Micro's pricing power was waning due to increased competition. Importantly, management attributed margin contraction to the costly production ramp of direct liquid cooling (DLC) components. CFO David Weigand said, "We had to ramp up our supply chain. We paid a lot of expedite costs and higher supply chain costs." The company expects its gross margin to return to historical levels (between 14% and 17%) by the end of fiscal 2025 as liquid cooling solutions begin shipping in higher volume. Hindenburg Research slammed Super Micro in a recent short report In August, short-seller Hindenburg Research accused Super Micro of accounting manipulation and sanctions evasion. The analysts that authored the report claim to have uncovered "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." Of course, short sellers have a vested interest in seeing a stock decline, but Super Micro subsequently delayed filing its Form 10-K and many analysts downgraded the stock. Samik Chatterjee at JPMorgan Chase wrote, "We see the report as largely void of details around alleged wrong doings." But he followed that insight with another note advising that new investors "remain on the sidelines till the company is back in compliance." Importantly, Super Micro failed to file its Form 10-K for 2017 in a timely fashion. It took nearly two years for the company to correct the problem, during which it was temporarily delisted from the Nasdaq Exchange. The SEC ultimately fined Super Micro $17.5 million for recognizing revenue prematurely and understating expenses. So, the allegations made by Hindenburg come with an element of déjà vu. The situation recently became more convoluted. On Sept. 26, The Wall Street Journal reported that the Justice Department is probing Super Micro. The impetus was a former employee who filed a whistleblower lawsuit against the company earlier this year. The lawsuit echoed certain allegations made by Hindenburg, including improper revenue recognition between 2020 and 2022. According to WSJ, the probe is at an early stage, and the situation could change rapidly as more news breaks. Wall Street forecasts significant upside for Super Micro shareholders, but investors should be cautious On the whole, Wall Street views Super Micro stock as undervalued despite the recent wave of downgrades. The median price target of $635 per share implies 39% upside from its current share price of $458. Analysts anticipate Super Micro's adjusted earnings will increase at 41% annually over the next two years, which does indeed make the current valuation of 20.7 times adjusted earnings look cheap. However, that estimate could change as Wall Street unpacks the Justice Department's probe. Where the stock goes from here depends on how that situation unfolds, as well as Super Micro's ability to expand its gross margin. Given the uncertainty surrounding the company, I think investors should stay on the sidelines for now. But Nvidia remains a compelling stock to own.

Should You Buy Super Micro Computer Stock Before Oct. 1? | The Motley Fool

Super Micro Computer is less than a week away from its 10-for-1 stock split. Artificial intelligence (AI) has emerged as the stock market's biggest trend over the last couple of years. As is the case with many other game-changing opportunities, some stocks have produced outsized gains. Sometimes, investors will back away from stocks that have witnessed rapid price appreciation in a relatively short time frame. One reason for this is the stock is perceived as too expensive given its new price tag. If shares climb high enough, a company's management team may opt for a stock split in an effort to spur new buying activity. During a stock split, a company will issue more shares, thereby causing the stock price to drop. The important caveat here is the outstanding share count and stock price should have an inverse relationship, therefore leaving the overall valuation of the company the same as before the split. Two higher-profile stock splits this year have come from chip giants Nvidia and Broadcom. Let's take a look at how trading activity has played out following each company's split. The chart below illustrates the return for Nvidia stock from the day its own 10-for-1 split was announced on May 22 through market close on Sept. 20. The day shares began trading on a split-adjusted basis (June 10) is annotated in the purple circle marked with the letter "S". Although shares have risen 22% since the day the split was announced, there are underlying trends illustrated in the chart above that are important to call out. For starters, Nvidia stock witnessed a sharp rise in the days leading up to the split. Although this buying continued for a brief period following the split, the euphoria appears to have been short-lived. Throughout July and parts of August, shares of Nvidia cratered to levels more in line with pre-split valuations. This means investors who bought Nvidia stock around the time of the split actually bought in at a higher valuation compared to before the split, despite the appearance of a lower-dollar stock price. Here's the real kicker: Since shares of Nvidia started trading on a split-adjusted basis on June 10, the stock is down 5% as of market close on Sept. 20. Broadcom announced a 10-for-1 stock split on June 12 as part of its fiscal 2024 second-quarter earnings results. Shares of Broadcom began trading on a split-adjusted basis on July 15. Shortly following the announcement of the split in June, shares of Broadcom spiked -- just as they did with Nvidia. Moreover, as with Nvidia, Broadcom's stock price experienced heavy selling activity shortly following the execution of the split in July. Since shares started trading on a split-adjusted basis on July 15, Broadcom has traded flat as of the Sept. 20 market close. You may be wondering why both Nvidia and Broadcom stock experienced such similar trading patterns around the time of their respective splits. One influence behind the volatility is likely due to momentum trading. Day traders often take advantage of momentum in hopes of booking a quick profit. One problem here is that less sophisticated investors may follow this activity but end up holding the bag after traders have dumped their position. But there were a number of macro-level factors that played a role in the ups and downs for both stocks too, which explains why the Nasdaq Composite exhibited similar trends over the same period. Much of this selling was due to shifting investor sentiment around AI with some analysts beginning to sound the alarm on stocks that may have climbed too high, too quickly. Moreover, this volatility carried over into September as investors waited anxiously for the Federal Reserve's decision to begin cutting interest rates. Just like Nvidia and Broadcom, shares of Supermicro stock surged following the announcement of its split in early August. However, you'll notice the stock has fallen nearly 26% since its announcement. Supermicro's ongoing sell-off likely stems from the combination of a mixed earnings report as well as a short report from Hindenburg Research. Heavy capital expenditures are having a noticeable impact on the company's gross margin, leading to concerns about liquidity and long-term profit potential. Management has described the margin deterioration as a short-term issue related to a new product rollout and supply chain issues. While the sell-off has normalized Supermicro's valuation a bit, I'm torn on whether or not it's a good buying opportunity at the moment. The prudent thing to do is sit on the sidelines and wait until after shares begin trading on a split-adjusted basis on Oct. 1. As time goes on, investors should get a clearer picture regarding the short report's allegations, all while observing how the market reacts following the execution of the split.

Super Micro Computer Plummeted Today -- Should You Buy the AI Stock Before Its Stock Split on Oct. 1? | The Motley Fool

Super Micro Computer is gearing up for a stock split on Oct. 1, but investors are feeling jittery following recent reports. Super Micro Computer (SMCI -12.17%) stock got crushed today following a report that the company is being investigated by the Department of Justice (DoJ). The server specialist's share price closed out the day's trading down 12.2%, and it had been down as much as 18.6% earlier in the session. The Wall Street Journal reported today that the DoJ is in the early stages of conducting an investigation into Supermicro. According to the report, the investigation is likely connected to allegations of bad accounting practices that were made in a short-seller note published by Hindenburg Research at the end of August. Following today's big sell-off, Supermicro stock is now down 66% from the high that it reached earlier this year. Despite the valuation pullback, the company is still on track to proceed with a 10-for-1 stock split that will take effect on Oct. 1. Supermicro has been hit with some intense bearish pressures lately, but it's possible that negative sentiment surrounding the stock has become overblown. For starters, the DoJ has not yet announced an official investigation into the company. Even if an investigation were to take place, that wouldn't necessarily mean that any impropriety had actually occurred. The Department of Justice has generally been applying more scrutiny to big-tech and financial companies lately, having has launched antitrust suits against companies including Apple, Alphabet, and Visa. Supermicro is unlikely to face antitrust scrutiny, but the DoJ's recent surge of activity provides background context that's worth keeping in mind. If an investigation into Supermicro by the DoJ is underway, Hindenburg's allegations that it had found evidence of new accounting violations by the tech company could have been a key catalyzing factor. But it's important to keep in mind that Hindenburg is a short seller, and it profits when valuations for companies it has placed bets against decline. The lack of visibility on the company's outlook means that Super Micro Computer stock won't be a good fit for investors without above-average risk tolerance. On the other hand, investors who are willing to embrace risk and uncertainty could wind up scoring big returns by treating recent sell-offs as a buying opportunity. Following today's stock pullback, Supermicro is now trading at just 12 times this year's expected earnings and less than 85% of expected sales. Even with expectations that the business will see cyclical moderation, that's a cheap-looking valuation for a company that has been seeing stellar sales and earnings growth thanks to artificial intelligence (AI)-driven demand. If the tech specialist scores wins with liquid-cooling technologies that help differentiate its high-performance rack servers, Supermicro stock could push through recent controversies and come roaring back.

Following the Hindenburg Report, What Will Super Micro Computer Stock Do After Its Much-Awaited Stock Split? | The Motley Fool

Supermicro still has a fantastic long-term earnings and stock performance track record. Stock splits have been a major part of market activity this year, with high-profile names like Nvidia and Walmart launching such operations. And, as you can see from my examples, they've spanned industries from technology to retail and beyond. Why do investors get so excited about stock splits? Well, they lower the per-share prices of often high-flying and popular players, making it easier for a broader range of investors to get in on these stocks. And a stock split often can be viewed as a positive sign from management, suggesting belief in the ability of the stock to soar once again. Though, keep in mind that a stock split does not change the value of a stock or of any individual's holdings. You end up with more shares at a lower price. Investors have gotten excited about stock splits this year, and in many cases, this has helped drive these particular stocks higher from the announcement date to the actual split. For example, Nvidia soared almost 30% during that period. But one stock in particular has been an exception, and that's the one involved in the market's next big stock split, set for Sept. 30. I'm talking about Super Micro Computer (SMCI -12.17%). The stock fell in recent weeks due to a short-seller's report alleging troubles at the company and extended losses late this week on a press report of a possible Justice Department probe. What direction will this top artificial intelligence (AI) stock take after its stock split? Let's look for some answers. First, let's take a look at Supermicro's recent and longer-term performance as well as the earnings picture. This 30-year-old company progressively built its business over time, but growth only took off in recent years as the AI boom gathered momentum. Supermicro makes workstations, servers, and other products necessary for AI data centers -- and the company tailors them to the needs of each customer. This has helped Supermicro's earnings to explode higher over the past few years, with quarterly revenue in late 2023 surpassing annual revenue from as recently as in 2021. And there's reason to be optimistic about Supermicro's earnings moving forward. The company continues to operate in the high-growth market of AI, which is expected to climb from $200 billion today to more than $1 trillion by the end of the decade. On top of this, Supermicro has taken steps to increase volume and decrease costs, with this being the focus of a new factory in Malaysia set to open later this year. All of this has helped Supermicro's shares soar over time -- gaining 2,200% over the past five years. And in the first half of this year, Supermicro even outperformed market darling Nvidia when it climbed 188%. So why the more than 30% decline from the announcement of Supermicro's stock split in early August until now? Three items in particular have weighed on the stock. First, an Aug. 27 report from short-seller Hindenburg Research alleging troubles at the company such as "accounting red flags" hurt investor sentiment. Short-sellers make money when a stock they are short on falls, so Hindenburg's report has to be taken with some skepticism. However, the day after Hindenburg released its report, Supermicro announced it had delayed the filing of its 10-K annual report, and this worried investors about potential changes to earnings figures. In a Sept. 3 letter, the company reminded people that "when we announced the decision to delay our Annual Report filing, we indicated that based on the work done so far, we don't anticipate any material changes in our fourth quarter or fiscal year 2024 financial results." And it stated that the short-seller's report "contains false or inaccurate statements." Adding to the company's woes, just this week, The Wall Street Journal, citing unnamed people familiar with the matter, said the Justice Department is probing Supermicro. A prosecutor from the U.S. Attorney's office in San Francisco contacted people who may have relevant information, and the probe is in the early stages, the newspaper reported. Now let's back up a bit. Earlier this month, Supermicro discussed the short report, calling statements in it "false or inaccurate." The company also said it would fully address the Hindenburg statements "in due course." And regarding the annual report delay, Supermicro said it didn't expect any significant changes to earnings. It's also important to consider that Hindenburg holds a short position in Supermicro, meaning it benefits from declines in the stock. In short-selling, investors borrow shares to sell, then must repurchase them -- ideally at a lower price -- to return to their original owner. As a result, Hindenburg has a bias toward Supermicro shares falling, and this makes it difficult to rely on Hindenburg as a source of information. Finally, a Justice Department probe hasn't been confirmed, but if a probe is confirmed at any point, this wouldn't automatically indicate wrongdoing. Investors should also keep in mind that the Justice Department has been vigilant regarding technology companies and has launched probes into others for various reasons. Now let's consider potential Supermicro performance after its stock split -- but not just over a few days, and instead over about a year. A study of stocks from 1980 through today shows that generally stocks that have split outperform the S&P 500 from the date of their split announcement through the 12 months to follow. These stocks have delivered an average total return of more than 25%, more than twice the S&P 500 average return, Statista reports, citing Bank of America data. So, history shows us Supermicro could soar in the year following its upcoming stock split. Of course, it's important to keep in mind that history isn't always right. There are occasions when individual stocks or the market don't follow historical patterns. It's impossible to predict stock performance with 100% accuracy, especially in the short term, and a year is a short term for investors. And in the case of Supermicro, news regarding a possible probe could impact the shares at least until there is more clarity on the issues. So what should investors do? If you're a Supermicro shareholder, it's best not to panic-sell. From the information we know today, the company's future looks bright. Demand for its products is strong, and interest in the company's direct liquid cooling (DLC) technology to tackle the problem of heat in AI data centers could offer a new wave of growth ahead. Even if Supermicro's shares suffer in the near term, they could climb significantly over a period of five years or more. But what if you haven't yet invested in Supermicro? Considering the latest news, it's probably best to wait for more information from the company and possibly the Justice Department before making any moves -- that way, you'll have more visibility and will be more comfortable with your investment decision.

Super Micro announces 10-for-1 stock split By Investing.com

SAN JOSE, CA - Super Micro Computer, Inc. (NASDAQ:SMCI), a global leader in high-performance, high-efficiency server technology and innovation, announced today a ten-for-one forward stock split. The split is scheduled to take effect after market close on September 30, 2024, with the company's common stock beginning to trade on a split-adjusted basis on the Nasdaq Global Select Market at the market open on October 1, 2024. The new CUSIP number for Super Micro's common stock will be 86800U302 following the stock split. This corporate action will increase the number of shares outstanding, making the stock more accessible to a broader base of investors. Stockholders of record who hold their shares in certificated form will be required to exchange their shares. They will receive instructions from Computershare Trust Company, N.A., the company's transfer agent, on how to surrender their stock certificates in exchange for book-entry shares representing the post-split amount. However, shareholders who hold their shares in electronic, book-entry form do not need to take any action to receive the new amount of shares. For those owning shares through a brokerage, bank, or other nominee, their accounts will be automatically adjusted to reflect the stock split. Beneficial owners should contact their brokers or custodians if they have any questions about the process. Super Micro's decision to split its stock reflects a continued commitment to maximizing shareholder value and improving the liquidity of its shares. The company's leadership believes that the stock split will make Super Micro's shares more accessible to investors and improve the marketability of the stock. In other recent news, Super Micro Computer is under investigation by the U.S. Department of Justice for alleged accounting manipulation, a claim initially brought forward by Hindenburg Research. Concurrently, the company has expanded its X14 server portfolio, integrating new Intel (NASDAQ:INTC) Xeon 6900 Series Processors to optimize high-performance computing, artificial intelligence, and cloud services. Super Micro also announced the release of its FlexTwin family of systems, designed to meet the demands of complex computing environments. Needham, a prominent investment firm, initiated coverage on Super Micro with a buy rating, highlighting the company's potential for growth in AI infrastructure. Despite facing allegations of accounting irregularities, Super Micro reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. The company continues to innovate, previewing its new X14 server platforms built on the upcoming Intel Xeon 6900 series processors. These are some of the recent developments at Super Micro Computer. Following Super Micro Computer's announcement of a ten-for-one forward stock split, a look at the company through the lens of InvestingPro provides additional context to its current financial landscape. According to recent data, Super Micro Computer boasts a robust market capitalization of $23.56 billion, underlining its significant presence in the tech sector. The company's P/E ratio stands at an attractive 18.61, suggesting a potentially undervalued stock in relation to its near-term earnings growth -- a point further emphasized by an InvestingPro Tip highlighting the stock trading at a low P/E ratio compared to its earnings growth potential. InvestingPro data also shows an impressive revenue growth of over 109% for the last twelve months as of Q4 2024, which aligns with an InvestingPro Tip that analysts anticipate sales growth in the current year. Furthermore, Super Micro Computer has achieved a high return on assets of 17.74% during the same period, indicating efficient management of its asset base to generate profits. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including observations on Super Micro's position within the Technology Hardware, Storage & Peripherals industry and its financial health in relation to debt and liquidity. These insights can be explored further by visiting the InvestingPro platform.

Wall Street's 2 Newest Artificial Intelligence (AI) Stock-Split Stocks Are Stealing the Spotlight Next Week | The Motley Fool

Two high-flying artificial intelligence (AI) stocks will take center stage in the upcoming week with respective 10-for-1 forward splits that follow in the footsteps of Nvidia and Broadcom. While there's no denying that artificial intelligence (AI) has played a key role in sending all three major U.S. stock indexes to multiple record-closing highs in 2024, the excitement surrounding stock splits has played a close second fiddle in lifting valuations. A stock split gives publicly traded companies the ability to adjust their share price and outstanding share count by the same magnitude, while having no effect on their market cap or underlying operating performance. Though there are two distinct types of stock splits, investors gravitate to one far more than the other. Reverse-stock splits, which are the less sought after type, are designed to increase a company's share price. These splits are usually completed by struggling businesses that are attempting to meet the minimum continued listing standards of a major stock exchange. On the other hand, investors usually flock to companies conducting forward-stock splits. A forward split reduces a company's share price to make it more nominally affordable for everyday investors and/or employees who lack access to fractional-share purchases through their broker. This is the type of split high-flying companies with clear-cut competitive advantages undertake. Since late January, a little over a dozen brand-name or high-profile companies have announced or completed a stock split -- and all but one is of the forward-split variety. Although market-leading AI stocks Nvidia (NVDA 0.43%) and Broadcom (AVGO 1.46%) have, arguably, been Wall Street's most-anticipated splits of 2024, they're going to be forced to cede the spotlight to two new artificial intelligence stock-split stocks next week. According to a 2023 report ("Sizing the Prize") from PwC, the AI revolution has the ability to add $15.7 trillion to the U.S. economy by 2030, with a combination of productivity gains and consumption side effects driving the charge. With an addressable market this large, it's really no surprise that Nvidia and Broadcom have garnered so much interest. With its market value climbing by well over $2 trillion since the start of 2023, Nvidia's board declared a historic 10-for-1 forward split, which went into effect following the close of trading on June 7. Meanwhile, Broadcom's first-ever stock split, also 10-for-1, was announced in mid-June and completed after the close of trading on July 12. Nvidia finds itself on the leading edge of the AI wave because its AI-graphics processing units (GPUs) are the undisputed top choice for businesses wanting to run generative AI solutions and build/train large language models (LLMs). TechInsights estimates Nvidia accounted for approximately 98% of all GPU shipments to data centers in 2022 and 2023, and the extensive backlog of its ultra-popular H100 GPU suggests it still maintains a near-monopoly share of the AI-GPU market. Equally important, Nvidia's CUDA software platform is keeping enterprise clients loyal to its array of products and services. CUDA is the toolkit used by developers to build LLMs and get the most they can out of their Nvidia GPUs. Broadcom is the equivalent of Nvidia, but from an AI networking solutions standpoint. Its solutions are being counted on to reduce tail latency in AI-accelerated data centers and maximize the computing capacity of AI-GPUs. The bulk of Broadcom's sales growth is coming from its AI-driven ecosystem at the moment. But Broadcom has a considerably more diverse revenue stream than Nvidia. In addition to its AI prowess, it's a leading provider of wireless chips and accessories used in next-generation smartphones, optical components for industrial equipment, networking products for new vehicles, cybersecurity solutions, and private/hybrid cloud solutions for businesses. While these two AI juggernauts will continue to be leaders, their time in the spotlight among AI stock-split stocks is over. Next week, two high-flying AI stock splits will take center stage. The first AI stock ready to take its place among the Class of 2024 stock-split stocks is customizable rack server and storage solutions specialist Super Micro Computer (SMCI -12.17%). Super Micro's board authorized a 10-for-1 split in early August, which is set to take effect following the close of trading on Sept. 30. This will be its first split since becoming a publicly traded company in March 2007. While Nvidia's GPUs are the brains behind AI-accelerated data centers and Broadcom is the leading provider of AI networking solutions, Super Micro Computer is the go-to infrastructure company for businesses wanting to build out their high-compute data centers. Super Micro enjoyed 110% growth in net sales in fiscal 2024 (ended June 30), and it's forecasting 87% sales growth at the midpoint of its revenue guide ($28 billion) for the current fiscal year. Super Micro has been particularly popular because it incorporates Nvidia's H100 into its customizable rack servers. Just keep in mind that orders for the H100 are backlogged, which has the potential to adversely impact Super Micro's ability to meet the needs of its customers. Something else to consider about Super Micro Computer is that it's dealt with hyped growth expectations before and tripped up. Shares of the company surged in the mid-2010s on the idea that its infrastructure solutions would be in high demand given the lofty expectations tied to enterprise cloud computing. Unfortunately, these aggressive growth forecasts weren't sustainable. Historically speaking, every next-big-thing innovation or technology for the last 30 years has needed time to mature. AI is highly unlikely to be the exception to this unwritten rule, which may leave Super Micro's aggressive growth forecasts vulnerable to downside revisions. Lastly, Super Micro is also reportedly facing an early stage probe from the U.S. Justice Department, per The Wall Street Journal, following a short-seller report from Hindenburg Research that alleged "accounting manipulation." While the company has denied Hindenburg's report, the delayed filing of its annual report isn't helping matters. Despite being remarkably cheap for a high-growth AI stock -- just over 10 times forward-year earnings -- Super Micro has a lot to prove to Wall Street and investors. The second AI stock-split stock that will be taking the spotlight away from Nvidia and Broadcom this coming week is semiconductor wafer fabrication equipment company Lam Research (LRCX 5.44%). Lam's board approved a 10-for-1 stock split and authorized a $10 billion share repurchase program on May 21, with the company's split -- it's first since 2000 -- taking place following the close of trading on Oct. 2. Chief Financial Officer Doug Bettinger has noted that his company intends to return "75% to 100% of free cash flow to stockholders in the form of dividends and share buybacks." Lam's role in the burgeoning AI ecosystem is to supply the wafer fabrication equipment used by semiconductor companies to manufacture AI solutions. In particular, its equipment plays a key role in the packaging of high-bandwidth memory (HBM), which is critical to the needs of AI-accelerated data centers. As demand for GPUs and HBM rises, so does the need for Lam's equipment. While Lam Research isn't growing at the same breakneck pace as Super Micro Computer, it's delivering steady mid-to-high teens sales growth and should sustain low-double-digit earnings-per-share growth through 2028. But even Wall Street's top AI companies contend with headwinds. The biggest concern for Lam is that U.S. regulators have clamped down on AI-related chip and equipment exports to China over the last two years. In the June-ended quarter, 39% of Lam's sales can be traced to China, making it more important than any geographic region. If regulators continue to take a hard-line stance with China, Lam's ceiling may be limited. There are also quite a few warnings that the U.S. economy may be steering toward a recession. Lam Research is highly cyclical (as are the other AI stocks discussed here) and would likely see future order activity weaken if U.S. or global economic activity slowed or shifted into reverse Although Lam Research looks to have more long-term upside than Super Micro, it still possesses near-term risks to investors after a mammoth run higher for its shares.