Graphics and artificial intelligence company Nvidia announced a 10-for-one stock split as a part of its first quarter earnings release Wednesday.
The company reported an over 260% increase in revenue compared to the first quarter in 2023, while data center revenue jumped 427% from last year to $22.6 billion, an increase fueled in part by the demand for generative AI training, the company said.
"The next industrial revolution has begun," Jensen Huang, Nvidia founder and CEO, said in a press release. "Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center − AI factories − to produce a new commodity: artificial intelligence."
Nvidia stock split to hit in June
Investors who hold Nvidia stock after market close on June 6 will receive nine additional shares per share owned after market close on June 7, with prices of those shares likewise splitting on a 10-to-one basis. Trading on the split basis will begin June 10.
The Silicon Valley-based company said that it would pay out a one cent per share dividend based on post-split holdings on June 28. Shareholders must have shares after market close on June 11 to receive the dividend.
Nvidia stock price
The tech giant's stock price jumped after the earnings release.
Nvidia closed the trading day at $949.50 per-share and is hovering around the $1,007 per-share mark in after-hours trading.
The activity leaves the stock on the verge of surpassing its one-year closing high of $950.02, which could be eclipsed Thursday.
What does Nvidia do?
Nvidia is a full stack computing company founded in 1993.
Its artificial intelligence clients include ChatGPT, Amazon, Snap and Google, according to a brief provided by the company.
The company also produces graphics cards that are key for modern gaming.
FAQs
Nvidia ($NVDA) stock will undergo its sixth stock split with shares trading at one-tenth the price starting June 10, 2024. Before the Q1 2024 earnings call on May 22, 2024 when the split was announced, NVDA closed at $949.50.
What happens when Nvidia stock splits? ›
Instead, a stock split will lower the price of each share by offering more shares to current holders. The ratio of the split determines the number of shares each investor will receive. In the case of Nvidia, it's a 10-for-1 stock split, so for every one share you hold, you'll get an extra nine.
What is a 10-for-1 stock split? ›
For instance, if a shareholder owns one share worth $1,000 before the split, they will own 10 shares worth $100 after the split. Their stake in the company will remain unchanged. But stock splits can still create value for investors.
When did Nvidia announce stock split? ›
Nvidia's Stock Split History
6/10/2024: 10-for-1. 7/20/2021: 4-for-1. 9/11/2007: 3-for-2.
How much will Nvidia stock be worth in 5 years? ›
Multiplying the projected earnings with Nvidia's five-year average forward earnings multiple of 39 suggests that its stock price could hit $2,266 per share (barring any stock splits or other events) after five years. That would translate into a jump of 162% from current levels.
Should I buy Nvidia now or after split? ›
The short answer is it doesn't matter, and here's why. As mentioned earlier, a stock split doesn't change the value of the company or the value of an investor's holding. If you buy one share today or 10 shares after the split, you'll be investing the same amount of cash.
Is it good or bad when a stock splits? ›
It's basically a draw, and the value of your investment won't change. However, investors generally react positively to stock splits, partly because these announcements signal that a company's board wants to attract investors by making the price more affordable and increasing the number of shares available.
Is NVDA a good stock to buy? ›
Nvidia is in outstanding financial health. As of April 2024, the company held $31.4 billion in cash and investments, as compared with $9.7 billion in short-term and long-term debt. Semiconductor firms tend to hold large cash balances to help them navigate the cycles of the chip industry.
Do stock splits add value? ›
Stock splits neither add nor subtract fundamental value. The split increases the number of shares outstanding, but the company's overall value does not change. Immediately following the split the share price will proportionately adjust downward to reflect the company's market capitalization.
Is a 10 to 1 reverse stock split bad? ›
A reverse split isn't necessarily good or bad by itself. It is simply a change in the stock structure of a business and doesn't change anything related to the business itself. That said, a reverse split is usually taken as a sign of trouble by the market, and most of the time it isn't done for a positive reason.
In the event of a stock split, the number of shares increases and the face value of each share reduces, thus making it easier for new investors to show interest and invest in the company's stock. In other words, there can be an increase in the number of shareholders as more investors would buy at lower prices.
What happens when a stock splits 10 to 2? ›
When a stock with a face value of ₹10 undergoes a 2:1 stock split, the face value of the stock reduces from ₹10 to ₹5. This results in doubling the number of shares owned, but the total investment value remains constant at ₹10.
Will Nvidia stock split in 2024? ›
Nvidia ($NVDA) stock will undergo its sixth stock split with shares trading at one-tenth the price starting June 10, 2024. Before the Q1 2024 earnings call on May 22, 2024 when the split was announced, NVDA closed at $949.50.
How to invest in Nvidia stock? ›
You can buy Nvidia stock through a brokerage account. Add money to the account, search within the brokerage's platform using the symbol "NVDA," decide how much stock to buy and submit the trade. You cannot buy Nvidia stock directly from Nvidia the company.
Which stocks will split in 2024? ›
Stock Splits
| Symbol | Company | Effective Date |
|---|
| GWAV | Greenwave Technology Solutions, Inc. | 6/3/2024 |
| BCDA | BioCardia, Inc | 5/30/2024 |
NVIDIA Stock Prediction for 2024
End-of-Year 2024: Most Bullish Projection: 2493.52 (StockScan) Most Bearish Projection: 1235.89 (WalletInvestor)
What will NVDA stock price be in 2025? ›
NVIDIA Stock Prediction 2025
The NVIDIA stock prediction for 2025 is currently $ 1,980.90, assuming that NVIDIA shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 80.23% increase in the NVDA stock price.
What is the prediction for Nvidia stock? ›
The average price target for Nvidia is $1,197.64. This is based on 40 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $1,400.00 ,the lowest forecast is $870.00. The average price target represents 9.24% Increase from the current price of $1,096.33.
