Stock Splits Elusive Even After Scorching Chip Rally

This year’s run-up in technology stocks, and particularly chipmakers, has left many with price tags so lofty it may seem like now is the time for firms to split their shares.

The group’s popularity among investors, however, means the companies may not need to take that step to lure more buyers. Corporate executives appear to be getting the message: this may be the first year since 2010 with no splits announced among Nasdaq 100 Index members, according to data compiled by Bloomberg through Monday.

Top performers “don’t have to be as worried about splitting to remain attractive,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. The prevalence of fractional shares also makes companies with high stock prices accessible to many investors, he said.

Nasdaq 100 Companies Skipped Split Announcement This Year

Splits saw a resurgence during the pandemic as tech stocks skyrocketed amid rock-bottom interest rates and swelling demand for electronic devices and digital services. Apple Inc. and Tesla Inc. enacted stock splits in 2020; for the electric vehicle-maker, it was the second such move in a two-year span. Last year, Inc. and Alphabet Inc. both split their stocks within a few months of each other.

The practice faded as stocks tumbled during last year’s tech-led rout. And this year, there are signs that investors, especially individuals, are willing to pay up for chipmakers even after they logged huge rallies.