Nasdaq Set for a Surge in 2024: Top Two Stock-Split Shares to Consider

Following a tough phase for market players, the year 2022 stood as a testament to resilience within the stock market, with particular focus on the Nasdaq Composite. Suffering a decline surpassing 35% in the said year, its worst in over ten years, the Nasdaq Composite experienced an impressive rebound, boasting a 41% gain in 2023. Industry observers keen on historical data noted that tech-centric indices such as the Nasdaq tend to rise by an average of 19% in the year succeeding a bear market. This pattern presents an optimistic forecast for future growth, suggesting that the current upward trend may continue into 2024.

Amidst this positive outlook, stock splits are gaining renewed attention among investors. Stocks that have undergone splits are often those that have showcased strong growth in preceding years, hence they are widely considered for investment. Two such notable companies have emerged as prime candidates for investors' consideration.

Alphabet's Position for Growth

Alphabet, the parent company of Google, registers as a key player, with a decade-long stock gain of 415%. This impressive track record led to a 20-for-1 stock split in mid-2022. Despite facing challenges in recent years, including a significant drop in online advertising revenue—Google's primary income source—the industry is on an upturn with projected growth. Alphabet, holding nearly 30% of the global online advertising market, is well-situated to benefit from this growth.

Digital advertising isn't the only sector fueling Alphabet's promising future; cloud infrastructure and advancements in artificial intelligence (AI) technology also play vital roles. With Google Cloud's revenue and market share on the rise, and the company's quick adoption and integration of cutting-edge AI into its services, Alphabet appears armed for continued success. Furthermore, attractive pricing at 5 times forward sales also positions Alphabet as a favorable option for investors.

Nvidia's Forward Momentum

Nvidia represents another stock-split success story, with a mesmerizing 12,420% stock increase over the past decade, which was followed by a stock split in mid-2021. A pioneer in graphics processing units (GPUs), Nvidia has dominated not just the gaming industry but has also made significant inroads into data centers and AI technologies.

Their GPUs are essential for data centers and have captured up to 95% of the market for data center GPUs. With the rise of AI, Nvidia has adapted swiftly, producing innovative processors and software. The company's data center revenue has soared, thanks in part to the demand for AI technology, and this growth is anticipated to persist.

Nvidia's valuation metrics, although high compared to traditional measures, are justified by the company's rapid growth and innovation. Its PEG ratio suggests it is undervalued when one considers its growth potential, especially relative to the S&P 500. This makes Nvidia an attractive stock for investors who understand the transformative nature of their products and market position.

Nasdaq, Alphabet, Nvidia