AVGO & SMCI: Top AI Stock Splits to Buy in September

Stock splits have long captured investor imagination, creating psychological appeal through lower per-share prices that attract retail investors. While fundamentally a cosmetic change that doesn’t alter a company’s market capitalization, splits often trigger increased trading activity and broader market participation. The 2024 splits by Broadcom and Super Micro Computer followed this pattern, but what makes these particular moves significant is their timing within the artificial intelligence boom. Unlike splits during market peaks that sometimes signal overvaluation, these occurred as both companies demonstrated genuine growth momentum in the most transformative technology sector of our time.

For savvy investors, the post-split period represents an opportunity to evaluate whether the underlying business justifies investment beyond the split hype. In the case of AVGO and SMCI, the splits coincided with operational excellence and strategic positioning within the AI ecosystem. The increased accessibility brought by lower share prices has allowed more investors to participate in companies that are fundamentally driving the AI infrastructure build-out, making these splits more than just financial engineering—they’re gateways to participating in technological transformation.

Broadcom’s 10-for-1 stock split in 2024 came at a time when the company was demonstrating exceptional operational performance. Trading around $364 post-split, AVGO has delivered remarkable returns with 56% year-to-date gains and 121% over 12 months, reflecting investor confidence in its AI strategy. The company’s success stems from its custom AI chip business, which services four major customers: Meta Platforms (META), Alphabet (GOOGL), OpenAI, and ByteDance. This concentration on top-tier AI innovators provides both stability and growth potential as these companies continue expanding their AI capabilities.

Financially, Broadcom presents a compelling picture. Second-quarter results showed a 22% year-over-year revenue increase to $15.95 billion, with earnings per share of $1.69. More impressively, the company maintains a 44% free cash flow margin and 36.9% operating margin, indicating efficient operations and strong profitability. Over the last five years, Broadcom has achieved over 20% compounded annual growth in sales, demonstrating consistent execution. The company’s AI revenue is expected to exceed 60% of total revenue in the next financial year, highlighting its successful pivot toward artificial intelligence technologies.

Beyond growth, Broadcom offers income through its dividend, currently yielding 0.65%. With free cash flow booming, analysts anticipate significant dividend increases later this year. The combination of growth, profitability, and income makes AVGO particularly attractive for investors seeking balanced exposure to AI. Some analysts speculate about another potential split if the stock crosses $400, but the fundamental story—driven by AI demand and financial strength—remains the primary investment thesis.

Super Micro Computer’s 10-for-1 split in September 2024 positioned the company as a more accessible play on AI infrastructure. Trading around $45 post-split, SMCI has gained 51% year-to-date, though its journey has been more volatile than Broadcom’s. The company’s fortunes are closely tied to NVIDIA (NVDA), as it manufactures data center storage systems and servers optimized for AI workloads. This relationship has become particularly valuable with SMCI’s recent announcement of volume shipments of NVIDIA’s Blackwell Ultra system and HGX B300 systems worldwide.

However, SMCI’s recent performance highlights both opportunity and risk. Fourth-quarter revenue reached $5.8 billion with net income of $195 million, but the company missed consensus sales estimates and revised its 2026 outlook downward. Management cited production constraints, customer delays, and a competitive landscape as challenges. These headwinds reflect the realities of operating in the fast-evolving AI hardware space, where supply chain issues and intense competition can impact short-term results despite strong long-term demand.

Despite these challenges, SMCI’s partnership with NVIDIA and its early leadership in AI infrastructure solutions position it well for the ongoing AI revolution. As NVIDIA chips become more widely available, SMCI stands to benefit from increased deployment of AI systems across industries. The company’s awareness of market dynamics and its strategic adjustments suggest management is navigating these challenges proactively. For investors with higher risk tolerance, SMCI represents a potential undervalued opportunity in the AI ecosystem, though it requires careful monitoring of execution against expectations.

Both Broadcom and Super Micro Computer offer distinct investment propositions within the AI theme. AVGO presents a more diversified and financially stable option with strong margins, consistent growth, and income characteristics. Its broad customer base beyond AI and established market position provide downside protection while maintaining significant AI exposure. SMCI, while more volatile, offers purer play on AI infrastructure demand and potential for higher returns if execution improves and market conditions favor its niche.

Investors should consider their risk tolerance, investment horizon, and portfolio composition when evaluating these opportunities. Broadcom suits those seeking established companies with proven track records in technology transformation, while Super Micro Computer appeals to investors comfortable with higher volatility for potentially greater rewards in the AI infrastructure build-out. Both stocks, however, share the common characteristic of being essential enablers of artificial intelligence adoption—a trend that shows no signs of slowing despite periodic market fluctuations.

As with any investment, particularly in fast-moving technology sectors, diversification and ongoing monitoring remain crucial. The AI revolution continues to evolve, and while Broadcom and Super Micro Computer are well-positioned, investors should maintain balanced portfolios and stay informed about technological developments, competitive dynamics, and macroeconomic factors that could impact these companies. For those seeking exposure to AI through companies that have already demonstrated execution capability, both AVGO and SMCI warrant serious consideration following their 2024 splits.