Nvidia completed a 10-for-1 stock split, but history suggests potential decline post-split

From Nasdaq: 2024-06-15 04:12:00

Nvidia completed a 10-for-1 stock split, following a 225% surge in the stock price last year and an 850% increase since November 2022 due to the rise of artificial intelligence. However, history shows that previous stock splits have led to a decline in value for Nvidia shareholders.

Although Nvidia’s past stock splits have resulted in short-term declines, patient investors have seen significant long-term gains post-split. The company has a dominating market share in data center GPUs and AI chips. The CEO emphasized Nvidia’s full-stack computing capabilities, unique software, and ecosystem, which provide a strong economic moat against competitors.

Wall Street expects Nvidia to continue strong growth, but its current valuation might seem a bit pricey. Nevertheless, with the booming demand for AI hardware and services, Nvidia could surpass earnings growth expectations. Analysts believe that, despite the high valuation, Nvidia remains a solid investment for those seeking exposure to the growing AI sector.



Read more at Nasdaq: Nvidia’s 10-for-1 Stock Split Comes With a Warning. History Says the Artificial Intelligence (AI) Stock Could Do This Next.