Nvidia's 10-for-1 Stock Split: What Investors Need to Know
A Significant Shift for the Chipmaker
Nvidia is one of the hottest stocks out there, but the chipmaker is undergoing a significant shift. The company that is nearly single-handedly responsible for the rise of artificial intelligence (AI) and gaming is preparing to execute a 10-for-1 stock split.
Details of the Split
Nvidia's 10-for-1 split means that if you hold one Nvidia share, you'll receive an extra nine as part of the operation. In order to get the extra shares, you don't need to do anything. The stock will begin trading on a split-adjusted basis when the market opens on Monday, June 10. For each share of Nvidia stock a shareholder owns, they will receive an additional nine shares, resulting in a 10x increase in the number of shares outstanding.
Nvidia conducted a 4-for-1 stock split on July 20, 2021. This was another good news/bad news scenario for investors. While the stock price dropped by 75% after the split, it has since recovered and is now trading at an all-time high.
Conclusion
Nvidia's 10-for-1 stock split is a significant event for the company and its investors. The stock split will make Nvidia's shares more affordable for a wider range of investors and could help to boost the company's overall valuation. It's a sign that Nvidia is confident in its future and believes that its stock is undervalued. As a result, investors should consider this stock split as a positive development and an opportunity to add more Nvidia shares to their portfolio.
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