The Nasdaq Composite has been on a tear in recent years, driven by the tech sector's explosive growth, particularly in the artificial intelligence (AI) space. As we look ahead to 2025, historical trends and expert analysis suggest that the Nasdaq could be poised for another surge. Two AI stocks that have recently announced or completed stock splits, Nvidia (NVDA) and Broadcom (AVGO), have caught the attention of investors and analysts alike. Let's dive into the reasons behind their stock splits and the potential for these AI stocks to benefit from a Nasdaq surge in 2025.



Nvidia: The AI Chip Superstar
Nvidia, the leading provider of graphics processing units (GPUs) used in AI applications, has been on an incredible run. The company's stock price has gained over 600% since the start of 2023, driven by strong demand for AI chips. In June 2024, Nvidia completed a 10-for-1 stock split, making its shares more accessible to retail investors and employees. Despite the split, Nvidia's stock price has continued to rise, gaining 17% in the following month.

Nvidia's dominance in the AI chip market is well-earned, with the company holding a 98% market share in data center GPUs. Its most recent stock split took effect after the market closed on June 7, 2024, and the company is on pace to keep growing rapidly. Revenue rose 122% year over year in its fiscal 2025 second quarter to $30 billion, driven by strong demand for its AI chips.



Broadcom: The AI Networking Powerhouse
Broadcom, a diversified technology company with a strong presence in AI networking solutions, has also been a standout performer in the AI space. The company's stock price has gained 173% since the start of 2023, driven by strong demand for AI-related products. In July 2024, Broadcom completed a 10-for-1 stock split, similar to Nvidia's move.

Broadcom's revenue from AI is expected to reach $12 billion in 2024, representing a significant portion of its total sales. The company's AI networking solutions, such as the Jericho3-AI fabric, are capable of connecting large quantities of GPUs to reduce tail latency and maximize the computing ability of AI-GPUs. This has driven strong demand for Broadcom's products and contributed to its impressive stock price performance.



AI Stocks to Buy Now
According to select Wall Street analysts, Nvidia and Broadcom are well-positioned to benefit from a Nasdaq surge in 2025. Nvidia's stock is expected to have an implied upside of 85% in 2025, while Broadcom's stock is expected to have an implied upside of 57%. These AI stocks have demonstrated strong performance and growth potential, making them attractive investments for those looking to capitalize on the AI boom.

In conclusion, the Nasdaq's potential surge in 2025 is supported by historical trends, such as the stock-split trend and the strong performance of AI stocks. Nvidia and Broadcom, two AI stocks that have recently announced or completed stock splits, are well-positioned to benefit from a Nasdaq surge in 2025. Investors looking to capitalize on the AI boom should consider these AI stocks as potential investments. However, it is essential to conduct thorough research and consider the risks associated with any investment decision.