From Nasdaq: 2024-06-07 08:28:00

Nvidia will perform a 10-for-1 stock split on Monday, causing the stock price to fall about 90%. However, existing shareholders will receive 10 times as many shares. Stock splits do not change the company’s underlying valuation but could attract more retail investors due to lower share prices. Nvidia’s CUDA software stack gives the company a strong competitive advantage in the AI chip market. Competitors like AMD and Intel are developing alternatives, posing a threat to Nvidia’s moat. Nvidia is focusing on innovation and increasing pace with new chip architectures like Blackwell and Rubin to stay ahead of competitors. The future AI chip market could reach $110 billion to $400 billion by 2027. Nvidia currently holds a significant share in the market, with potential growth dependent on the market size. Investors should pay attention to Nvidia’s software moat, innovation pace, and AI chip market size rather than the stock split impact. It’s essential to consider these factors before investing in Nvidia for the long term. The Motley Fool analyst team has identified 10 stocks for investors to buy now, with Nvidia not being one of them. Consider the potential returns of investing in these selected stocks before making a decision on Nvidia. *Stock Advisor returns as of June 3, 2024.



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