Nvidia Announces 10–1 Stock Split Amidst Soaring Market Performance

NVIDIA (NASDAQ: NVDA) announced a 10-for-1 stock split of its common stock to be distributed after the close of trading on June 7, 2024. Robust investor confidence and world-class market performance over the past several weeks has empowered the computing company to make this announcement.

Record-Breaking Performance

Shares of Nvidia hit a new high last week, and the stock’s market cap has ballooned as unparalleled demand for the company’s most sophisticated graphics processing units (GPUs) and artificial intelligence (AI) capabilities pushed it higher. Through a combination of new product launches and strategic acquisitions, the company has carved out a leadership position in several of today’s most exciting technological developments.

The Stock Split Decision

A 10-for-1 stock split would lower the entry barrier for a large number of retail investors Nvidia’s stock surge in the past year might offer the ‘new’ stock split as a means of equalising the demand and supply of shares. Ordinarily, restricted supply propels up share prices — the fewer the number of securities, the higher the demand and subsequently the price. But, a 10-for-1 stock split would lower the entry barrier for a huge number of retail investors, thus favouring buyers over sellers. The…