NVIDIA has recently reached a significant milestone by surpassing $3 trillion in market capitalization, making it the second most valuable company in the US. This achievement comes just before the company’s scheduled 10-for-1 stock split on Friday, which will make NVIDIA stock more accessible to average investors.
After the stock split, each current shareholder will receive nine additional shares for every share they own. This means that if someone owns one share before the split, they will have 10 shares afterward, while owning 10 shares will translate to 100 shares. Despite the split, the company’s overall valuation of $3 trillion will remain unchanged.
While stock splits don’t always lead to positive outcomes for all companies, historically, companies that undergo stock splits tend to outperform the S&P 500 in the following 12 months. This bodes well for NVIDIA as it embarks on this significant change in its stock structure.
For more insights on NVIDIA’s market performance and the implications of the stock split, viewers can watch the full episode of Wealth on Yahoo Finance with Brad Smith. This achievement underscores NVIDIA’s continued success and growth in the market as it solidifies its position as one of the top companies in the US.
Article Source
https://finance.yahoo.com/video/nvidias-3t-valuation-impact-10-174606276.html
