From The Motley Fool.: 2024-06-10 06:20:00

Nvidia executed a 10-for-1 stock split, reducing its trading price while maintaining valuations. This change may lower the cost of trading options and stock-based compensation for Nvidia. However, retail investors may not be significantly impacted due to fractional share trading availability. Investors are encouraged to focus on Nvidia’s long-term growth prospects.

Nvidia’s revenue growth stagnated in fiscal 2023, but soared by 126% in fiscal 2024 due to the rapid growth of the generative AI market. Data center chip revenue accounted for 87% of fiscal 2025’s Q1 revenue. Analysts project a 98% rise in its revenue for fiscal 2025, reflecting strong market demand.

Nvidia’s gaming business is rebounding, with steady revenue growth in fiscal 2024. The company’s GeForce RTX SUPER GPUs have received positive market reception and are positioned well for the convergence of gaming and AI markets on PCs. Nvidia dominates the desktop GPU market and is expected to benefit from PC gaming market growth.

Analysts expect Nvidia’s revenue and earnings per share to grow at impressive rates over the next few years. At 48 times forward earnings, Nvidia appears reasonably priced considering its growth potential. Despite potential challenges, Nvidia remains a significant player in the AI market and is expected to continue driving innovation and growth.



Read more at The Motley Fool.: Forget the Stock Split — These Are the 3 Reasons to Buy Nvidia’s Stock Now