NVIDIA announces 10-1 stock split

Owning shares in one of the hottest companies on the US markets, NVIDIA, is about to become a whole lot cheaper!

If you’ve been wanting to get in on NVIDIA stock but the US$1,100 share price is too steep, then you’re in luck!

The chip manufacturer just announced a 10-to-one stock split, which is expected to take effect on June 7. Seems like stock splits are going around this year, because we just talked about Chipotle’s massive 50-to-one stock split.

You know I love to quote Oprah – you get a stock split, you get a stock split, everybody gets a stock split!

But I feel like with NVIDIA, most people saw this coming. Because the company’s stock price has skyrocketed over the last five years. 

Five years ago, the stock was trading at US$39. As I’m recording this on May 29, the stock price is just over US$1,100! That’s a 3000% increase in five years!

That’s crazy, but not surprising. NVIDIA’s business has soared since the start of the AI revolution. They specialize in chips, which are tiny little circuit boards that are used to power almost everything – your phone, laptop, electric cars etc.

And since most everything now needs a circuit board to operate, business is booming!

They brought in US$26 billion in the first quarter alone. That’s up 262% compared to last year. 

And they show no signs of slowing down. Tech giants, Google, Microsoft, Meta, and OpenAI are some of NVIDIA’s largest clients, and each of those companies have billions of dollars worth of AI plans, so that’s good news. 

Like I said earlier,  the stock split takes effect on June 7. A 10 to one split means the shares will come down to the 90 to 100 dollar price range, depending on the share price at the time of the split. 

And that’s the bottom line.

FYI, this information is for educational purposes only and is not to be considered investment advice.  Please consult your licensed financial advisor on any investment decisions.

NVIDIA trades on the NASDAQ stock exchange.