Nvidia (NASDAQ:NVDA) has become the poster child of the artificial intelligence (AI) revolution. The company provides the graphics processing units (GPUs) which are essential components of AI systems, driving its stock price into the stratosphere. Since the advent of generative AI early last year, Nvidia’s revenue has soared 330%, while its net profit has jumped 952%. This performance, in turn, sent its stock price up 488% (as of this writing).
As a result, the stock price currently sits above $1,100 per share, putting it out of reach for many ordinary investors – but that’s all about to change. The highly anticipated from Nvidia 10 for 1 stock split comes into effect after market close today.
Let’s go over the details of this split and what investors can expect in the coming days and weeks.
A quick summary
When Nvidia announced results for the first quarter of its 2025 fiscal year (ended April 28), the company’s unprecedented winning streak continued. Revenue jumped 262% year over year to a record $26 billion, while earnings per share (EPS) soared 629% to $5.98. The results were led by record data center revenues, which include AI chips, which soared 427% to $22.6 billion. This stunning performance was not a one-off, but rather represented the fourth consecutive quarterly performance with triple-digit sales and profits, pushing its stock price above $1,000.
Management announced a 10-for-1 stock split “to make ownership more accessible to employees and investors.” The split is expected to take place after market close on Friday, June 7. For every share investors hold, they will receive nine additional shares. The stock will begin trading on a split-adjusted basis at market open on Monday, June 10. For every Nvidia share owned by a shareholder – currently selling for around $1,100 per share (at the time of this writing) – after the split. , investors will own 10 shares worth $110 each, so the total value of the investment will not change as a result of the split.
The famous “stock split shock”
Even though a stock split itself doesn’t fundamentally change anything about the underlying business, stock splits tend to generate a lot of enthusiasm among investors – and for good reason. Data shows that in the year following a split, the stocks in question tend to outperform the market as a whole.
A study conducted by Bank of America Global Research found that in the 12 months following a stock split, companies that underwent a stock split generated returns of 25.4% on average, compared to gains of 11.9% for companies that underwent a stock split. stock split. S&P500.
It is important to note that the larger stock price gains are not necessarily caused by the stock split itself, but rather by the strong business and operational performance that fueled the initial stock price rise , which ultimately led to the stock split.
The data suggests that after the split, Nvidia stock will likely continue to outperform the broader market.
What the future holds
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