Broadcom Stock Split: Why AVGO Shares Are More Accessible Now
We’ve all seen those tech stocks that look exciting, until we check the price. Broadcom (AVGO) was one of them. With its shares trading above $1,000, many everyday investors simply looked away. But that’s changed now. A move that caught the market’s attention, Broadcom announced a 10-for-1 stock split.
That means one share became ten, and the price dropped to a level more people can afford. Suddenly, what once felt out of reach is now within grasp.
Stock splits aren’t new, but they’re often misunderstood. Some think they make a stock cheaper. Others believe it’s a sign of strength. The truth? It’s both simpler and more strategic than that.
We’re not just here to talk numbers. We’re here to understand what Broadcom’s bold move means. Why now? Who benefits? And what should we consider as investors or everyday market observers?
Maybe you already hold AVGO in your portfolio, or first time you’ve noticed it. So, we’ll discuss how this change brings fresh opportunities.
What is a Stock Split?
A stock split happens when a company divides its shares into smaller pieces. This means each share costs less, but investors end up with more shares in total. For example, in a 10-for-1 split, one share becomes ten. The total value of what you own stays the same, only the number of shares changes.
Splits don’t change what the company is worth. They just change how the pieces are divided.
The Broadcom Stock Split Details
On June 12, 2024, Broadcom announced a 10-for‑1 stock split. It took effect on July 15, 2024. Before, AVGO traded near $1,500-$1,700. After each share was around $150-$170. The split multiplied shares and lowered the price. But market cap stayed the same at around $790 B.
Why Broadcom Did This?
We see three main reasons:
- Housing stock price
AVGO was expensive. A $1,700 share is hard for many to buy. - Boost liquidity
With a lower price, more people can trade. That can increase demand. - Signal confidence
Shares hit record highs. Management showed they expect growth to continue.
Plus, Broadcom joins other AI chip leaders like Nvidia and Lam Research, who also split shares recently.
Impact on Investors
If you owned AVGO before July 15, your broker auto‑adjusted your account. One share became ten. The total value stayed the same.
But now:
- We can buy shares in smaller chunks.
- More people can invest without huge capital.
- The spread on each trade is smaller. That may help with smoother trading.
Still, stock splits don’t change the business fundamentals.
Market Reaction to Broadcom Stock Split
What happened in the market?
- AVGO rose ~21% after the split announcement in June 2024.
- On June 13, Broadcom jumped around 15% after raising its AI chip forecasts alongside the split news.
- The day of the split, July 15, the AVGO stock traded lower on an adjusted basis, but this was expected.
So investors welcomed the move. Trading volume climbed, too.
What does it mean for Broadcom’s Future?
What can we expect long-term?
More retail investors:
When share prices drop, more everyday people can afford to buy in. This opens the door for small investors who couldn’t afford Broadcom before. It helps the company build a broader base of long-term holders.
Better liquidity:
More shares and more buyers = faster trading. This can lead to tighter price gaps and smoother trading, which helps everyone, from beginners to big players.
AI tailwinds:
Broadcom is growing fast in AI. Its AI-related revenue reached nearly $11 to $12 billion this year alone. The company expects that number to keep rising as demand for smart chips and data systems grows worldwide.
Index inclusion:
The lower share price and increased trading volume may help Broadcom qualify for more ETFs and stock indexes. That means more big funds could start buying AVGO, which often supports the stock over time.
All this strengthens Broadcom’s position in semiconductors and AI infrastructure.
Broadcom Stock: Should You Invest Now?
We ask:
- Are fundamentals strong?
- Is growth still solid?
- Does valuation make sense?
Broadcom beat Q4, 2024 expectations. Revenue grew 51% year over year. Net income is strong. AI revenue more than tripled to $12.2B last year. This shows real business power.
Risks? Valuation is high. Market swings can happen in tech. And competition and macro pressures may rise.
If we believe in AI and core networking, AVGO looks solid. Just watch your risk and invest with a long view.
Final Thoughts
The 10-for‑1 split makes Broadcom stock easier for more people to own. That is a clear win for retail investors. But it doesn’t change what the company does or earns.
We get better access to AVGO. But success still depends on Broadcom’s AI strength and smart execution. If we buy in now, we buy for the long haul, not just the buzz around a split.
Frequently Asked Questions (FAQs)
Stock splits don’t cause price jumps. But more people may buy the lower-priced shares. If the company keeps growing, the stock could rise over time.
AVGO is Broadcom’s stock ticker. It comes from “Avago,” the company that bought Broadcom in 2016. After the deal, they kept the Broadcom name but used the Avago code.
Not always. A split changes how many shares exist, not how many are allowed. But sometimes, companies raise authorized shares before or during a split.
No one can say for sure. But Broadcom works in AI and chips, which are growing fast. If trends stay strong, AVGO could grow more in value and size.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.