History Says the Nasdaq Will Crush 2024. Here’s 1 Artificial Intelligence (AI) Stock-Split Stock to Buy and Hold Forever.

2022 was a tough year in the stock market. Concerns stemming from a challenged economy caused pronounced selling activity, sending stocks into a nosedive. The tech-heavy Nasdaq Composite dropped 33% in 2022 — marking only the sixth time in over 50 years it’s dropped by that level or more.

In the midst of 2022’s sell-off, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) completed a 20-for-1 stock split. Analyzing stock-split stocks can be an interesting exercise as it may shed some light on companies that have experienced higher trading volumes and witnessed a surging share price. While stock splits do not inherently increase the value of a company, seasoned investors know that following a stock split, the company’s shares typically tend to see increased demand — given its perceived lower price — that eventually pushes up the stock price.

Since splitting in July 2022, Alphabet stock has returned about 28% — much lower than its big tech counterparts such as Microsoft, Apple, Amazon, Meta, and Nvidia. I think a lot of this has to do with artificial intelligence (AI), and which companies are seen as emerging leaders.

One could argue that Microsoft, Nvidia, and even Tesla garner the most attention when it comes to AI. Microsoft kicked off the AI race after a $10 billion investment in OpenAI, the developer behind ChatGPT. Meanwhile, demand for Nvidia’s semiconductor chips, which are used to train generative AI models, is surging, and Tesla appears to be on the brink of commercially available autonomous driving.

Given this level of competition, AI investors may have missed out on Alphabet’s progress. In fact, billionaire hedge fund manager Bill Ackman thinks Alphabet’s AI business is so overlooked that investors can buy it “for free.”

I agree with Ackman’s position and think Alphabet stock looks like a bargain. Let’s dig into why 2024 could be a great time to buy some shares in this underappreciated AI leader.

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A trip down memory lane

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