Broadcom just can't seem to stay out of the headlines. After that massive 10-for-1 split back in July 2024, everyone basically assumed the dust would settle for a few years. But honestly? The way this thing is climbing, people are already whispering about whether Broadcom is expected to split its stock again in 2025. It sounds a bit wild to split twice in under eighteen months. Most companies wait years. But Broadcom isn't exactly playing by the old rules anymore, especially with the AI tailwind basically acting like rocket fuel for their semiconductor segment.
Look at the numbers for a second. By late 2025, the stock was already bouncing around the $380 to $400 range. For context, the 2024 split happened when the price was screaming past $1,700. If Hock Tan and the board want to keep the "retail-friendly" vibe alive, they usually don't like the price getting too heavy. While there is no official confirmation yet for a 2025 split, the trajectory makes it a legitimate topic of conversation in trading circles.
What’s Driving the Broadcom Stock Split Talk?
It’s all about the AI hype cycle meeting real-world revenue. In the fiscal year 2025, Broadcom’s adjusted EBITDA hit a record $43 billion. That’s not a typo. Their AI semiconductor revenue grew 74% year-over-year by the end of 2025, fueled by custom AI accelerators and those high-end Ethernet switches that every data center on the planet seems to need right now.
When a stock price grows this fast, it creates a "liquidity" problem. Basically, if a single share costs $500 or $1,000, it's harder for regular people to buy in, and it's tougher for the company to use stock-based compensation for employees.
Broadcom has explicitly mentioned "accessibility and liquidity" as the main reasons for their previous split. If the price keeps trending toward that $500 mark in early 2026, the board might decide that another "haircut" is necessary to keep the momentum going.
The VMware Factor
We can't ignore the software side of things. The VMware integration has been... well, it's been a journey. But by late 2025, the infrastructure software segment was contributing nearly 40% of total revenue. They’ve successfully transitioned a lot of that business to a subscription model, which Wall Street loves because it's predictable. Predictable revenue usually leads to a higher stock multiple, which—you guessed it—pushes the share price up further.
Is a 2025 Split Actually Likely?
If we're being real, most analysts are skeptical about a second split so soon. Usually, a company wants to see how the first split "settles" into the market. Capital.com analysts noted in late 2025 that while the price is high, it's still "manageable" for most institutional investors.
However, there's a weird quirk with Broadcom. They have these "CDR" (Canadian Depositary Receipts) that actually did undergo a 6-for-1 split in November 2025. This often confuses people. If you saw a headline saying "Broadcom splits 6-for-1," it might have been referring to the CAD-hedged version (AVGO.CA) rather than the main NASDAQ listing.
That said, here’s why people keep betting on another one:
- The "Nvidia Effect": Investors are watching Nvidia’s playbook closely. High-growth tech giants are becoming more aggressive with splits to stay in the Dow Jones Industrial Average or just to keep retail interest high.
- Price Momentum: Broadcom's 52-week high reached $414.61 by early 2026. If it tests $500, history suggests the "split watch" goes into overdrive.
- Employee Retainment: Silicon Valley talent is expensive. Broadcom uses RSUs (Restricted Stock Units) to keep their best engineers. A lower share price makes those packages easier to manage and distribute.
Addressing the "Bubble" Concerns
It’s not all sunshine. Some folks, like billionaire Philippe Laffont of Coatue Management, have been piling into Broadcom, but others are worried the AI trade is getting a bit crowded. If the AI spending from big tech (the "hyperscalers") slows down in 2026, Broadcom's price could stagnate. If the price isn't rising, there’s zero reason to split.
Also, the valuation is getting a bit spicy. With a P/E ratio sitting north of 70 in early 2026, the stock is priced for perfection. Any miss in earnings—like the one some feared before the December 2025 report—could send the price backward, effectively killing any talk of a split.
How to Play a Potential Broadcom Stock Split
If you're looking for actionable steps, don't just buy because you hope for a split. A stock split is a "cosmetic" change. It's like cutting a pizza into 12 slices instead of 8—you still have the same amount of pizza.
- Watch the $500 level: Historically, this is the "danger zone" where tech boards start talking about splits.
- Monitor AI Revenue: Specifically, watch the "Semiconductor Solutions" segment in the quarterly reports. If AI revenue keeps doubling, the stock price will likely follow.
- Dividend Growth: Broadcom just hiked their dividend by 10% to $0.65 per share for fiscal 2026. They are a "total return" play, not just a growth play.
- The "Wait and See" on Splits: Don't trade the rumor. Splits often lead to a short-term pump followed by a "sell the news" event. It’s better to own the company because you believe in their custom XPU (Extreme Processing Unit) business than because of a share-count change.
Honestly, whether Broadcom is expected to split its stock again in 2025 depends entirely on if the market stays irrational about AI. If the bull run continues through the next two quarters, I wouldn't bet against Hock Tan pulling the trigger on another split to keep the party going. But for now, the most important thing is the underlying cash flow—and that looks as solid as ever.
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Keep an eye on the March 2026 earnings call. That’s usually where management drops hints about "capital allocation strategies," which is corporate-speak for "we might change the share structure." Until then, it's all speculation, even if it's very well-educated speculation.