Investors who own NVIDIA Stock at market close Thursday afternoon are expected to be impacted by the chipmaker’s upcoming stock split.
The 10-to-one split was announced with a dividend increase at the end of May. The announcements accompanied strong first-quarter results from the chipmaker and artificial intelligence developer.
The split will come a day after the tech giant overtook Apple to become the second most valuable company in the world.
Nvidia’s valuation surpassed $3 trillion on Wednesday, putting the company behind Microsoft, valued at $3.14 trillion.
Here’s what you need to know about the Nvidia stock split:
How the Nvidia Stock Split Works
Investors who hold Nvidia shares at the end of Thursday’s trading day are expected to receive nine additional shares after the end of Friday’s trading day. The value of the shares will be adjusted to reflect the split.
Negotiation on the shared value price will begin on Monday.
Nvidia dividend
Shareholders will receive a dividend of one cent per share at the end of Tuesday, which the company will pay on June 28.
Nvidia Hits $3 Trillion After Announcing Tesla Split, Dividend, Order
Nvidia crossed the $3 trillion threshold the day after Tesla CEO Elon Musk said on X, formerly known as Twitter and owned by Musk, that the electric car maker is likely spend between 3 and 4 billion dollars on Nvidia hardware this year, accounting for about 30% to 40% of the company’s AI spending this year, according to Musk.
The revelation of Tesla’s order comes after Nvidia reported strong profits in the first quarter of the year.
The company reported more than 260% increase in turnover compared to the first quarter of 2023, while data center revenue jumped 427% from last year to $22.6 billion, an increase fueled in part by demand for AI training generative, the company said.
“The next industrial revolution has begun,” said Jensen Huang, founder and CEO of Nvidia. exclaimed in a May press release announcing first quarter results. “Companies and countries are partnering with Nvidia to move traditional, trillion-dollar data centers to accelerated computing and build a new type of data center – AI factories – to produce a new product: artificial intelligence.”
Nvidia stock price
Nvidia stock closed Wednesday at $1,224.40 per share.
If the stock had split on Wednesday, it would have been valued at $122.44 per share. The ticker rose just under 29% between the stock split announcement in May and the close of trading on Thursday.
This article was originally published on USA TODAY: When is Nvidia stock split? Key dates to know before the 10-to-1 split
