Stocks

Heightened Growth and Potential Stock Splits: Spotlight on Nvidia and MercadoLibre

Published November 28, 2023

Investors often look to stock splits for clues about successful companies, and for a good reason. A stock split usually follows a notable rise in share price, stemming from persistent, strong financial performance. In the spotlight are two growth stocks, Nvidia and MercadoLibre, which have not only rewarded shareholders handsomely with 1,160% and 376% gains respectively over five years but also present compelling reasons for future investment.

Nvidia's Dominating Tech Landscape

Nvidia stands tall in the world of graphics and computing power, spearheading the creation of Graphics Processing Units (GPUs) that revolutionized gaming graphics two decades ago. These GPUs are now crucial for AI and data center operations. Nvidia's impressive market share and deep integration into AI and 3D graphics make it a strong contender for continued success, especially as AI's demand is expected to surge. Despite its high valuation, Nvidia's consistent growth and future prospects in a rapidly expanding AI market justify its price and the strategic approach of gradually building an investment in the company.

MercadoLibre's Command Over Latin American Markets

MercadoLibre reigns as a titan in Latin America's e-commerce, finance, and digital advertising sectors, all of which are poised to benefit from the region's digital transformation. With a robust marketplace and value-added services, MercadoLibre experiences a self-reinforcing network effect. Its remarkable third-quarter financial results and significant presence in growing markets suggest steady upward momentum. Even with a valuation lower than the three-year average, the projections for MercadoLibre's sustained revenue growth make it an attractive choice for investors looking to buy.

Growth, Investment, Potential