Jensen Huang, co-founder and CEO of Nvidia Corp., during the Nvidia GPU Technology Conference (GTC) in San Jose, California, United States, Tuesday, March 19, 2024.
David Paul Morris | Bloomberg | Getty Images
Nvidia announced a 10-for-1 forward stock split in its first-quarter earnings report Wednesday. The shares will begin trading on an adjusted basis when the market opens on June 10, according to a release.
Stock splits don’t change a company’s financial fundamentals, but they do make each stock less expensive, which can have a positive psychological effect on retail investors. Nvidia said the stock split would make ownership “more accessible to employees and investors,” the statement said.
Nvidia stock closed Wednesday at $949.50. With a 10-to-1 split based on that price, each share would cost $94.95, although an investor would have to buy 10 of them to own the same amount of the company that they currently get with one share. Alphabet, Amazon And You’re here all stock splits orchestrated in 2022.
Nvidia shares jumped nearly 4% in extended trading Wednesday.
The company said each holder of Nvidia common stock will receive nine additional shares of common stock that will be distributed after the market closes on Friday, June 7. Negotiations will begin the following Monday.
Nvidia investors have enjoyed a historic rally over the past five years, with the stock price increasing 25-fold. The company has long been known as the leading maker of advanced graphics processing units (GPUs) for video games, but has recently become the central hardware player in the artificial intelligence boom.
Nvidia’s fiscal first quarter revenue soared 262% from the year-ago period, marking the third consecutive quarter of growth above 200%.
The chipmaker also announced it was increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. After the split, the dividend will be one cent per share.
