From Forbes: 2024-06-04 09:15:55

Nvidia’s stock has surged over 15% since the announcement of a 10-for-1 stock split happening on June 7. Investors are debating whether to buy now or wait. The split aims to make stock ownership more accessible, but some warn against irrational expectations. Nvidia’s strong earnings suggest positive momentum ahead.

Nvidia’s split offers investors nine additional shares for each share held. Traders often buy post-split, anticipating a stock run-up. Nvidia’s split is viewed as a bullish sign, reflecting positive momentum. Rising earnings, driven by demand for AI-capable chips, have boosted Nvidia’s stock price. Founder Jensen Huang sees AI as the next industrial revolution.

Nvidia reported record quarterly revenue of $26.0 billion, up 262% year-over-year. Data center revenue hit $22.6 billion, up 427% from a year ago. Earnings are forecasted to grow significantly, outperforming the S&P 500 and tech sector. Analysts are optimistic about Nvidia’s growth potential in the coming years.

Nvidia is part of the ‘Magnificent Seven’, along with tech giants like Google, Apple, and Microsoft. The group posted a combined $118.65 billion in net income for the first quarter, a 56% jump from a year ago. Nvidia’s profit surged the most at 628%. The tech sector continues to show strong financial performance.



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