NVIDIA is set to undergo a stock split, with shareholders receiving an additional nine shares for every share they own if they acquire them by the end of the trading day. The company recently reported impressive first-quarter earnings for fiscal year 2025, surpassing analyst expectations with earnings per share of $6.12 and revenue of $26.04 billion. Wall Street experts are projecting a consensus earnings of $27.03 per share for the current year, with a top-line revenue of $120.41 billion.
In addition to the strong financial performance, NVIDIA announced a 10-for-1 stock split and a dividend increase. Shareholders who own shares by next week will receive a dividend payout of 1 cent per share on June 28. The company’s market capitalization has exceeded $3 trillion, making it more valuable than many national stock markets. The stock has outperformed industry benchmarks in Toronto and Seoul, leading to the decision to split the stock.
The stock split will make NVIDIA shares more accessible to a broader base of investors who may have found the previous price per share, around $1,200, prohibitive. The split will not impact the company’s valuation but will make shares more affordable and consequently more attractive to retail investors. NVIDIA’s success has posed a challenge due to its high price, but the stock split aims to address this issue and increase accessibility.
Despite the stock split making shares “cheaper,” NVIDIA’s market cap has reached $3 trillion, making it one of the most valuable companies in the world, alongside Microsoft. The author of the article, Josh Enomoto, a former senior business analyst at Sony Electronics, believes that the stock split will benefit investors by making NVIDIA shares more accessible. He does not hold any positions in the securities mentioned in the article.
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https://investorplace.com/2024/06/want-to-participate-in-the-nvidia-stock-split-you-must-hold-nvda-shares-today/