Barron's Streetwise Stock Splits + Semis
Feb 14, 2025
Medhi Hosseini, a semiconductor analyst at Susquehanna International Group, shares insights into the semiconductor industry's recent spending trends. He predicts a near-term peak in computing investments, sparking discussions on how this could impact the stock market. The conversation also dives into the mechanics and misconceptions around stock splits, revealing their potential to increase investor returns. Additionally, the episode highlights the significance of AI and cloud spending on the semiconductor landscape, alongside interesting anecdotes about meme coins.
AI Snips
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Transcript
Episode notes
Stock Splits and Returns
- Stock splits don't change a company's fundamentals, but they have been correlated with higher returns.
- In 2023, there were 17 split announcements in the S&P 500, the most since 2013.
Avoid Stock Split Chasing
- Jack Howe doesn't recommend chasing stock splits as an investment strategy.
- Focus on buying good companies for long-term holds instead.
Semiconductor Spending Peak
- Semiconductor stocks, driven by AI excitement, have been a market driver.
- Mehdi Hosseini predicts a peak in computing spending, which might impact these stocks and the overall market.