Nvidia CEO Michael Landsberg believes that Wall Street has underestimated the potential of Nvidia and sees the company as a long-term investment opportunity. The company recently announced a 10-for-1 stock split, which is expected to benefit investors as the stock has seen significant growth this year, closing at $949.50 per share. The stock split will take effect on June 7, 2024, with each share being worth $94.95.
Nvidia’s success in the AI industry has been driving its growth, with first-quarter revenue reaching $26 billion, up 262% from the same period last year, and exceeding estimates. The company also provided a better-than-expected second-quarter revenue forecast of $28 billion. CEO Jensen-Huang has positioned Nvidia as a leader in AI technology, surpassing competitors like Meta and Google.
Stock splits have been trending this year, with high-priced companies like Nvidia and Chipotle implementing them to reward current investors and attract new ones. Chipotle recently approved a 50-for-1 stock split, following a similar move by Walmart, which split its shares 3-for-1 earlier this year. Walmart’s CEO cited the importance of making stock ownership accessible to all employees in line with the retailer’s founder’s vision.
Overall, Nvidia’s stock split reflects the company’s confidence in its long-term growth potential and its commitment to providing value to investors. With its position as a leader in AI technology and a strong financial performance, Nvidia is poised for continued success in the market.
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https://www.foxbusiness.com/markets/nvidia-shares-stock-split