Nvidia Announces 10-for-1 Stock Split Following Stellar Earnings Report

Nvidia Corporation has announced a 10-for-1 stock split. The decision was revealed alongside the company’s blockbuster first-quarter earnings report. This move aims to make shares more accessible to a broader base of employees and investors.

The split will be distributed as a stock dividend to all shareholders of record by June 10, 2024. Trading is expected to begin on a split-adjusted basis by June 13, 2024. This is the chipmaker’s first stock split since July 2021.

Record Earnings Fuel Investor Confidence

The stock split follows an extraordinary period of growth for Nvidia. According to Reuters, the company reported a staggering 262% surge in quarterly revenue. This performance far exceeded market expectations.

Nvidia’s data center segment was the primary driver of this growth. Demand for its AI-grade GPUs continues to outpace supply. The company’s market valuation has soared past the $2 trillion mark, cementing its position as a tech titan.

Broader Impact and Market Analysis

This split directly impacts retail investors by lowering the entry price per share. It does not change the company’s fundamental valuation. However, the psychological effect often boosts retail trading activity.

The decision signals strong confidence from Nvidia’s board in future growth prospects. It reflects the central role the company plays in the global artificial intelligence infrastructure build-out. Industry analysts see this as a bullish indicator for the entire tech sector.

The 10-for-1 stock split underscores Nvidia’s dominant market position. It makes owning a piece of the AI revolution more attainable for everyday investors. This strategic move highlights the company’s robust financial health and optimistic future outlook.

Info at your fingertips

What is the record date for the Nvidia stock split?

The record date for the split is June 10, 2024. Shareholders on record by this date will receive nine additional shares for each share they own. The new shares will be distributed after the market closes.

When will Nvidia begin trading at the split-adjusted price?

Trading for Nvidia stock at the new, lower price is expected to begin on June 13, 2024. The stock symbol, NVDA, will remain unchanged. This gives the market time to process the share distribution.

Why did Nvidia decide to split its stock?

The company stated the split aims to make stock ownership more accessible to employees and investors. A lower share price can attract more retail investment. It also rewards existing shareholders without a cash outlay.

Does a stock split change a company’s market value?

No, a stock split does not alter a company’s market capitalization. The total value of all shares remains the same. It simply increases the number of shares while decreasing the price per share proportionally.

How has Nvidia’s stock performed this year?

Nvidia’s stock has seen tremendous growth, rising over 90% year-to-date. This surge is largely driven by unprecedented demand for its AI chips. The company continues to outperform major market indices.