Nvidia announced a 10-for-1 stock split following its Q1 2024 earnings report, where it exceeded expectations with adjusted earnings per share of $6.12 and revenue of $26 billion, a significant increase from the previous year. This move is expected to take place on June 7, 2024. The company also plans to increase its dividend from $0.04 per share to $0.10 and projects revenue of $28 billion in the current second quarter.
Nvidia’s stock has been on a meteoric rise in 2024, driven by its leadership in chip technology, particularly in the artificial intelligence sector. The increasing interest in AI technology has elevated the demand for Nvidia’s chips, contributing to the company’s strong performance. With a market capitalization of $2.335 trillion as of May 2024, Nvidia ranks third globally in market capitalization.
CEO Jensen Huang highlighted the importance of AI in revolutionizing industries and improving efficiency, emphasizing Nvidia’s role in accelerating computing and the development of AI technology. Investors have responded positively to Nvidia’s growth prospects, leading to a surge in the company’s stock value.
The stock split announcement has boosted investor confidence, with Nvidia shares rising up to 4% in extended trading after the news. Shareholders are set to receive nine additional common shares for each existing share they own before the market closes on June 6, 2024. The distribution of the additional shares will occur after the market closes on June 7, 2024, and trading on a split-adjusted basis is expected to commence on June 10, 2024.
In conclusion, Nvidia’s strong financial performance, coupled with its leading position in chip technology and AI, has propelled the company to new heights in 2024. The stock split announcement reflects Nvidia’s confidence in its growth trajectory and commitment to delivering value to shareholders. Investors are optimistic about Nvidia’s future prospects and the role it will play in shaping the future of technology and artificial intelligence.
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