Nvidia stock split results in lower share price, strong revenue growth, but faces future challenges.

From Nasdaq: 2024-06-12 12:07:00

Nvidia recently underwent a stock split, resulting in a lower share price of around $126. Despite this change, Nvidia’s market cap remains at $3 trillion. The company’s growth is driven by its GPUs, leading to a 262% revenue increase to $26 billion and a net income jump of 628% to $14.88 billion.

Although Nvidia’s stock may seem attractively priced after the split, potential investors should consider the company’s future challenges. Nvidia faces difficult comps in the coming years, and a slowdown in demand could impact its growth. While the company remains strong in the AI industry, there are risks associated with investing in a company that has experienced rapid growth.

Investors should exercise caution when considering investing in Nvidia, as the stock may face a correction at some point. The Motley Fool Stock Advisor team has identified other stocks with potential for strong returns, excluding Nvidia from their list of top picks. The Stock Advisor service has a proven track record of outperforming the S&P 500 since 2002, providing guidance on building a successful portfolio with regular stock updates.



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