Nvidia is rolling out a 10-for-1 stock split, cashing in on the AI boom it has been driving and giving investors a hefty nugget.
The stock has advanced over 91% this year, closing at $949.50 per share on Thursday in the extended session shares rose past the $1,000 mark.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
NVDA | NVIDIA CORP. | 949.50 | -4.36 | -0.46% |
Post split, which is effective on June 7, 2024, one Nvidia share would be worth $94.95. Nvidia shares have risen over 231,485% since its IPO in January 1999.
The announcement came as first quarter revenue of $26 billion, up 262% from the same period a year ago, beat estimates of $24.6 billion, as tracked by LSEG. The company also delivered a higher-than-expected second quarter revenue forecast of $28 billion compared to a $26 billion estimate.
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Nvidia is considered the poster child for AI leading other rivals including Meta and Google under the direction of CEO Jensen-Huang who is also the company’s largest individual shareholder, owning nearly 4% of company shares, as tracked by Thomson Reuters.
« The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence, » said Huang in the earnings announcement.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
META | META PLATFORMS INC. | 467.78 | +3.15 | +0.68% |
GOOGL | ALPHABET INC. | 176.38 | -1.47 | -0.83% |
Stock splits are in vogue this year as companies with high-priced shares roll out these divides, rewarding current investors and enticing new ones.
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Chipotle’s board of directors approved a 50-for-1 split of its common, shareholders of record as of June 18 will receive the additional shares after the market closes on June 25.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
CMG | CHIPOTLE MEXICAN GRILL INC. | 3,153.38 | -19.42 | -0.61% |
WMT | WALMART INC. | 65.25 | +0.10 | +0.15% |
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The burrito maker followed a similar move by Walmart earlier this year. The nation’s largest retailer split its shares 3-for-1 in February so more employees could be shareholders. CEO Doug McMillon said it follows the mission of the retailer’s founder.
« Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates, » McMillon wrote in February.