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NVIDIA Stock Split: A Comprehensive Analysis of the 2024 Split and Its Implications

NVIDIA Stock Split: A Comprehensive Analysis of the 2024 Split and Its Implications

 Introduction

NVIDIA Corporation, you can say, (NASDAQ: NVDA), which is a leader in GPUs and AI technology, executed a 10-for-1 stock split, commonly known NVIDIA Stock Split, on June 10, 2024, to make its high-flying stock more accessible. This article tries to explore the split, its context, impacts, and recent developments, drawing on verified sources for accuracy.

What is a Stock Split?

As one can have idea that stock split divides existing shares into multiple shares which is ultimately reducing the per-share price without changing the company’s market value. In NVIDIA, the stock 10-for-1 split, one share at $1,000 became 10 shares at roughly $100 each, maintaining the investor’s total value but boosting affordability and liquidity.

NVIDIA Stock Split 2024

It was announced on May 22, 2024, during the time when NVIDIA’s Q1 fiscal 2025 earnings, the split followed a 262% revenue increase to $26 billion and 560% EPS growth to $6.12. Effective after market close on June 7, 2024, trading adjusted on June 10. It is also noted that NVIDIA also raised its dividend by 150%, signaling strong financial confidence. The split aimed to attract retail investors and potentially support NVIDIA’s inclusion in the Dow Jones Industrial Average, achieved in November 2024.

Historical Context

This was NVIDIA’s sixth split since its 1999 IPO:

  • 2000, 2001, 2006: 2-for-1
  • 2007: 3-for-2
  • 2021: 4-for-1

Past splits often preceded growth but faced challenges like the dot-com crash or 2008 financial crisis. Still, NVIDIA’s stock has surged 58,000% since 1993, driven by AI and GPU dominance.

Why the Split?

  1. Accessibility: Lowering the share price from over $1,000 attracted retail investors.
  2. Employee Benefits: Simplified stock-based compensation.
  3. Liquidity: Increased share count enhances trading volume.
  4. Market Optics: The split signaled growth confidence, boosting investor sentiment.

Impact on Investors

  • Existing Shareholders: No change in total value; 100 shares at $1,000 became 1,000 at $100.
  • New Investors: Lower prices broadened access, though fractional shares were already available.
  • Market: Post-split, NVIDIA gained 9% in May 2024 but later fell 22% from its peak due to U.S.-China trade tensions. It joined the Dow, enhancing its prestige.

Recent Developments (2025)

On May 29, 2025, NVIDIA reported $44.1 billion in Q1 fiscal 2026 revenue, up 69% year-over-year, driven by its Blackwell GPUs. However, U.S. export restrictions to China cut sales by $8 billion this quarter, causing a 2.4% stock drop on May 31, 2025. Analysts remain bullish, with a $164 price target (25% upside), per Piper Sandler and Visible Alpha.

Should You Invest in NVIDIA Stock Split?

Pros:

  • AI leadership with Blackwell chips.
  • Strong fundamentals: 48% EPS growth expected for 2026.
  • Dow inclusion boosts visibility.

Cons:

  • Trade restrictions impact sales.
  • Competition from custom AI chips (e.g., Broadcom).
  • Volatility from macroeconomic concerns.

Conclusion

NVIDIA’s 2024 stock split made its stock more accessible, reinforcing its AI dominance. Despite trade challenges, its $44.1 billion revenue and analyst optimism highlight its strength. Investors should weigh long-term potential against short-term risks. Check NVIDIA’s Investor Relations for updates.

Disclaimer: Investing carries risks; consult a financial advisor.

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