On June 7 of this year, Nvidia shares began trading with a 10-for-1 split. This move is expected to make the stock more accessible to investors and those who do not have access to fractional shares. However, it does not mean an evolution in the current state of the company, since the market capitalization and other fundamentals have not changed because of this.
Nvidia before the stock split
The day before the split, Nvidia shares closed at $1,244.40. Its market capitalization of $3 trillion after the news of its stock split, making it the second most valuable company in the world.
📈 Discover 3 reasons to invest in Nvidia after the stock split
The company reported a more than 260% increase in revenue compared to the first quarter of 2023, while data center revenue increased 427% from last year to $22.6 billion, an increase driven in part due to the demand for training in generative AI.
Nvidia announces a new stock split
In late May 2024, Nvidia announced a 10-for-1 stock split, along with its first dividend payment.
Investors holding Nvidia shares at the end of the trading session on Thursday, June 7, received an additional 9 shares. Consequently, the value of the shares was adjusted to reflect the split.
As of Monday, June 10, Nvidia stock began trading at a price of around $120 per share.
Should you invest in Nvidia after the stock split?
Since the split, Nvidia’s share price is down slightly by 8% from its last high. However, experts are confident that this drop is temporary because there is no reason to doubt the company’s valuation after the stock split.
Thanks to its ability to stay on the cutting edge of AI, Nvidia stock is likely to continue outperforming the market. Its bullish trend was generated by strong fundamentals and not just fashion.
The bad news is that Nvidia is a high beta stock. This means it can provide higher profits, but it is also riskier.
The bright side is that Wall Street analysts are showing optimism about the future of Nvidia stock. Based on the rating of 41 experts, 38 give the stock a “Strong Buy” rating, demonstrating their expectation of upside.
As we mentioned, you shouldn’t buy Nvidia stock for the 10-for-1 split. However, lower stock prices can mean more movement for its shares for the lower price, making Nvidia an attractive investment for the long term.
Would you invest in NVIDIA stock now that it is more accessible? Read our article with 3 reasons why experts believe this may be a good time to invest in Nvidia shares.
Information in this post is for general informational purposes only. It cannot and should not be considered as suggestions or recommendations regarding investing or financial decisions.
