NVIDIA Stock Split: Investors to Get 10 Shares for Every 1 Owned
Historic Split Gives Investors a Major Boost
NVIDIA's highly anticipated 10-for-1 stock split has officially taken effect, granting investors nine additional shares for every one they already hold. This move marks a significant milestone for the chipmaking giant and could have a substantial impact on investors' portfolios.
Details of the Split
NVDIA stock closed at $949.50 on Wednesday, implying that each share would cost approximately $94.95 after the split. The split became effective after market close on Thursday, meaning that investors holding NVDIA stock by the end of trading will receive the additional shares.
Exceptional Company Performance
NVIDIA's stock split comes on the heels of tremendous price appreciation. Since the announcement of the split on May 22, NVDIA's shares have soared by nearly 30%, reaching a record high this week. The company's market capitalization has now surpassed $3 trillion.
Implications for Investors
While the stock split does not alter the underlying value of NVIDIA, it could make the stock more accessible to retail investors. With the lower share price, investors who were previously priced out of NVDIA may now have the opportunity to add the stock to their portfolios.
Impact on Stock Price
Despite the lower share price, analysts do not expect a surge in NVDIA's stock price solely due to the split. However, the split could potentially attract new investors and boost the stock's liquidity.
Historical Significance
NVIDIA's 10-for-1 split is its second in three years. The company's previous split, a 2-for-1 split, occurred in 2019. These splits demonstrate NVIDIA's commitment to making its stock more affordable and accessible to a wider range of investors.
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