Nvidia 10-for-1 stock split takes effect after chipmaker’s stock price doubles this year

Nvidia’s 10-for-1 stock split goes into effect Monday, giving investors nine additional shares for every one they already own.

from Nvidia the stock price has more than doubled this year after more than tripling in 2023 and it is now the third most valuable company in the S&P 500. The meteoric run allowed Nvidia to briefly overtake Apple last week as the second most valuable company in the United States has exceeded $3. trillion in market value.

The chipmaker has seen growing demand for its semiconductors, used to power artificial intelligence applications. From the company revenues more than tripled during the last quarter of the same period a year earlier.

Nvidia, which has positioned itself as one of the most important players in AI, has produced some eye-popping numbers. Here is an overview:

$3.011 billion

Nvidia’s total market value on Wednesday. Earlier this year, it overtook Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.168 billion) and Apple ($3.029 billion). The company was valued at around $418 billion two years ago.

$147 billion

This is the one-day increase in Nvidia’s market value on Wednesday.

10 for 1

The company’s 10-for-1 stock split took effect at the close of trading Friday. The move gives each investor nine additional shares for every share they already own.

Companies often do stock splits to make their shares more affordable to investors. Nvidia’s stock closed Wednesday at $1,224.40 and is just one of 11 companies in the S&P 500 with a stock price above $1,000.

After the stock split, Nvidia will open at $120.89 on Monday.

26 billion dollars

Nvidia’s latest fiscal quarter revenue. That’s more than triple the $7.2 billion reported for the same period a year ago. Wall Street expects Nvidia to generate $117 billion in revenue in fiscal 2025, which would be nearly double its 2024 revenue and more than four times its revenue. the previous year.

53.4%

Nvidia’s estimated net margin, or the percentage of revenue turned into profit. From another perspective, about 53 cents of every dollar of revenue Nvidia generated last year went to its bottom line. For comparison, Apple’s net margin was 26.3% in its most recent quarter and Microsoft’s was 36.4%. However, these two companies have significantly higher revenues than Nvidia.

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