Nvidia undergoes 10-for-1 stock split to make shares more affordable for investors

From Time: 2024-06-05 14:42:26

Nvidia’s stock will undergo a 10-for-1 split, making shares more affordable for investors. Shares have surged 1,843% on AI demand, with a market cap of $2.82 trillion behind Apple and Microsoft. The split aims to make stock ownership more accessible.
Stock splits don’t change a company’s value but make shares affordable. Nvidia pre-split trades around $1,198, but after the split, shares will trade for around $119.80. Investors shouldn’t buy for split gains, instead focus on earnings potential.
Nvidia is not the only company with stock splits in 2024. Walmart saw a 3-for-1 split with shares gaining 12%. Canadian Natural Resources and Chipotle are also splitting their stock this month. Walmart’s shares hit an all-time high of $181.35.
Consider index funds or fractional shares for exposure to Nvidia’s growth. Nvidia’s earnings have been strong, but future growth is uncertain due to competition and market risks. Stock splits shouldn’t be the sole reason to buy or sell Nvidia stock.



Read more at Time: Nvidia Stock Split: Is It a Good Time to Invest in Nvidia?