This Nvidia move in the second half will be much bigger than the stock split

Nvidia (NASDAQ: NVDA) has soared in recent years, and the stock added to its gains recently when it announced what many investors had been waiting for: a stock split. The company decided to launch a 10-for-1 stock split to bring its shares down to a level that would make it easier for a wider range of investors to buy. These transactions involve issuing more shares to current holders to make this happen.

Before the deal, Nvidia had surged to more than $1,000 per share, a level that could be a psychological barrier for some investors and a difficult buy for those wanting to take a small position. Today, with Nvidia shares trading around $120, those problems are gone. So while stock splits are not catalysts for stock performance, they can represent a positive development for a company.

But Nvidia’s big changes this year aren’t over. In fact, Nvidia has something big planned for the second half of the year. I predict this move by the artificial intelligence (AI) chip giant will be much bigger than the stock split – and will give you a great reason to buy the stock. Let’s see what awaits us.

Nvidia’s lower price per share

Of course, getting access to Nvidia for a lower price per share, thanks to stock splitIt’s exciting, but it’s important to remember that divisions don’t change anything business valuation: Nvidia is not cheaper today than before the split. In fact, a stock split doesn’t change anything fundamental.

However, this upcoming decision will. First, a little contextualization. Nvidia is already the global leader in AI chips, with its graphics processing units (GPUs) holding an 80% market share. Indeed, Nvidia’s GPUs are the fastest on the market, performing critical AI tasks like training and inference – the processes that help large language models do their job of solving complex tasks.

Nvidia also markets a variety of related AI products and services that make it the destination of choice for those starting an AI project. All of this helped the company grow its revenue and net profit by triple digits quarter after quarter.

Now for my prediction: Nvidia’s upcoming launch of its Blackwell architecture and its best chip yet is much bigger news for the company and could be a significant catalyst for the stock in the near term as well as over time as that platform grows revenue.

Blackwell could be a game changer because it represents an entirely new way to power AI, achieving incredible performance at up to 25 times lower cost and power consumption than Hopper, the previous system. This is a critical feature because these savings reduce an AI client’s overall costs, potentially making Nvidia’s system the more cost-effective choice over time.

The story continues

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