Nvidia (NASDAQ: NVDA) will complete a 10-for-1 stock split after today’s market close, reducing the stock price from $1,200 to $120 to make stock ownership more accessible. Nvidia’s revenue growth is driven by its leadership in AI chips, capturing over 80% of the market. The split does not change the company’s overall value but may attract new investors with a lower per-share price.
Nvidia’s split involves issuing more shares on a 10-to-1 basis to current holders, with trading adjusted on Monday. This doesn’t impact the company’s valuation or the value of existing shares. Investors can buy or sell Nvidia shares during the split without missing out on new shares. While the split won’t directly affect stock performance, it may make it easier for more investors to access Nvidia stock.
This lower per-share price could attract new investors and lower the entry barrier for those looking to invest in Nvidia. The split allows investors to buy full shares instead of fractional shares, making it more accessible to a broader range of investors. Overall, the stock split is a strategic move for Nvidia and a potential opportunity for investors to participate in the company’s growth story at a lower cost per share.
If you’re considering investing in Nvidia, it’s important to weigh the potential returns against other investment opportunities. The Motley Fool’s Stock Advisor has identified 10 stocks with high growth potential, including Nvidia. The service offers guidance on building a successful portfolio and regular updates on stock picks. Investing in these recommended stocks has historically outperformed the S&P 500. Consider your investment goals and research before making a decision to invest in Nvidia or other recommended stocks.
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