Analysis

Beware the Fall: Wall Street Analysts Forecast Declines for 3 Recently Split Stocks

Published June 4, 2024

In the dynamic world of stock markets, stock splits can often lead to heightened investor interest and share price surges. However, according to select Wall Street analysts, there's potential trouble on the horizon for three companies that recently implemented stock splits. Despite their pre-split momentum, these firms could see a significant retreat in their stock prices, by as much as 29%.

Nvidia Corporation NVDA

NVDA, known for its cutting-edge graphics processing units (GPUs) and system on chip units (SoCs), is a major player in the fields of gaming, professional graphics, mobile computing, and the automotive industry. While NVDA has a strong presence in its industry and is incorporated in Delaware, with its base of operations in Santa Clara, California, analysts caution that its recent stock split could lead to an eventual dip in stock performance.

Lam Research Corporation LRCX

On the frontlines of semiconductor processing equipment manufacturing, LRCX is an integral part of the creation of crucial components for integrated circuits. Headquartered in Silicon Valley's Fremont, California, LRCX's products are utilized in the essential front-end wafer processing, as well as back-end tasks like wafer-level packaging. Despite a successful stock split, Wall Street remains skeptical of LRCX's ability to maintain its current market valuation, suggesting a potential forthcoming price correction.

Amphenol Corporation APH

A premier producer of electronic and fiber optic connectors, cables, and interconnect systems, APH's roots trace back to its original name, American Phenolic Corp. Like its counterparts, APH has performed a stock split, aiming to make its shares more accessible to a broader base of investors. Nonetheless, the same wary outlook by analysts projects a probability that APH's share price could experience a considerable drop from its post-split peak.

stock-split, fall, forecast