Nvidia has set the stock split date for June 10, 2024. This is Nvidia’s sixth stock split, with a 10-for-1 ratio. Investors will get nine more shares for every one they own, making the price one-tenth of what it was.
As of May 22, 2024, Nvidia’s stock was at $949.50. It then hit a record high after the Q1 earnings call. To get the new shares, investors must own Nvidia stock by 4 PM ET on June 6, 2024. This change is meant to make it easier for retail investors and employees to buy stock, creating a buzz in the market.
Nvidia has a history of stock splits, with the last one being a 4-for-1 in May 2021. This move has analysts watching closely. It’s important for investors to know when is Nvidia stock split and how it might affect their investments.
Key Takeaways
- Nvidia’s stock split date is set for June 10, 2024, with a 10-for-1 ratio.
- Shareholders must own shares by June 6, 2024, to be eligible for the split.
- The stock price will decrease substantially, leading to trade at about $95 post-split.
- This split follows Nvidia’s record highs, indicating continued investor interest.
- A prior 4-for-1 stock split in May 2021 resulted in a price increase over 500%.
What Is a Stock Split?
A stock split is when a company divides its shares into more shares. This makes more shares available but lowers the price of each share. For example, a 10-for-1 split means one share becomes 10 shares, each priced lower.
Nvidia did a 10-for-1 stock split in June 2023. Before, shares were around $1200. After, they were about $120 each. This makes Nvidia easier for more people to invest in.
Stock splits can make shares more liquid and attract more investors. They show a company’s confidence in its future. This is good for Nvidia’s growth, as explained by the nvidia stock split explanation.
Nvidia has split its stock several times before. They did it in June 2000, September 2001, April 2006, and September 2007. Each time, they made shares more accessible to more investors. This shows Nvidia’s commitment to growth and appealing to various investors.
Why Do Stock Splits Matter For Investors?
Stock splits are key in investment strategies. They make shares more affordable for more people. This can lead to more trading, which might make the price go up.
Stock splits also have a psychological effect. Lower prices make shares seem more appealing. This can lead to a 2% to 4% increase in stock value when announced.
Shares priced between $10 and $50 attract retail investors. But, prices over $100 might scare them off. Companies split their stock to hit the sweet spot of $30 to $50, drawing in all kinds of investors.
There’s also the “nominal price illusion.” Lower prices make stocks seem more attractive. This bias affects how investors choose their stocks, showing the power of stock splits.
| Factor | Before Split | After Split |
|---|---|---|
| Nvidia Pre-split Price | $1,198 | $119.80 |
| Nvidia EPS (Q1 2023) | $0.88 | $6.12 (Q2 2024) |
| Market Cap (as of 2023) | $3.01 Trillion | N/A |
When Is Nvidia Stock Split?
The Nvidia stock split has caught the attention of many investors. They are curious about when it will happen and how it might impact their investments. The split is set for June 7, 2024, and will give shareholders nine new shares for each one they own. To get these new shares, investors must hold their current shares by June 6, 2024.
Upcoming Split Dates and Details
Nvidia’s stock split is its sixth in 25 years. After the split, shares will trade at a new price starting June 10, 2024. The current price of about $949.50 will be split into ten parts. Knowing these details is key to understanding the split’s effects.
| Split Date | Type | New Shares per Share Owned | Previous Closing Price |
|---|---|---|---|
| June 7, 2024 | 10-for-1 | 9 | $949.50 |
| July 2021 | 4-for-1 | 3 | N/A |
| September 2007 | 3-for-2 | 1.5 | N/A |
| April 2006 | 2-for-1 | 1 | N/A |
| September 2001 | 2-for-1 | 1 | N/A |
| June 2000 | 2-for-1 | 1 | N/A |
This stock split aims to make Nvidia more accessible to investors. Past splits have seen Nvidia’s stock price rise, showing investor confidence. The current split, with its dividend increase, looks promising. Investors should watch the dates closely for the benefits of the Nvidia stock split.
Nvidia Stock Split History
Nvidia Corporation has had a significant nvidia stock split history with six major splits. It started with an IPO in January 1999, where shares were $12 each. Over the years, shares have grown over 2,700%, making them very appealing to investors.
Overview of Past Nvidia Stock Splits
The past nvidia stock splits show Nvidia’s smart handling of stock management:
| Date | Split Ratio |
|---|---|
| June 27, 2000 | 2-for-1 |
| September 17, 2001 | 2-for-1 |
| April 7, 2006 | 2-for-1 |
| September 11, 2007 | 3-for-2 |
| July 20, 2021 | 4-for-1 |
| June 7, 2024 | 10-for-1 |
Today, an original IPO share is worth 480 shares. This change has made those shares worth about $67,000 as of October 30. Despite ups and downs, these splits have made Nvidia’s stock more liquid and accessible to more people.
Nvidia Stock Split Impact on Shareholders
The nvidia stock split shareholder impact can be big and in many ways. After Nvidia split its stock 10-for-1 on June 7, 2024, the price dropped from about $1,200 to $120. This makes it more inviting for new investors. Yet, it’s key to remember that the total worth of what an investor owns doesn’t change. The number of shares goes up, but the value stays the same.
One big effect of stock split on investors is how it changes dividends. Nvidia upped its quarterly cash dividend to $0.10 from $0.04, making it $0.01 per share after the split. This move can make investors feel good and shows the company is growing while keeping their investment returns steady.
Also, Nvidia’s stock history shows different reactions to splits. For example, the 2021 split led to a 145% jump in two years, unlike some earlier splits that went down. This shows how unpredictable stock performance can be after a split, changing over time.
| Split Date | Split Ratio | Performance (6 months) | Performance (1 year) | Performance (2 years) |
|---|---|---|---|---|
| June 7, 2024 | 10-for-1 | N/A | N/A | N/A |
| July 20, 2021 | 4-for-1 | +30% | -4% | +145% |
| September 11, 2007 | 3-for-2 | -45% | -70% | -53% |
| April 7, 2006 | 2-for-1 | +63% | +1% | -6% |
| September 17, 2001 | 2-for-1 | +44% | -72% | -49% |
| June 27, 2000 | 2-for-1 | -50% | +28% | -52% |
Nvidia keeps pushing the tech boundaries, and this often makes investors feel more positive. The long-term view shows Nvidia’s growth, leading to a ‘Moderate Buy’ rating from analysts. This shows the company’s strength and growth, making investors more confident in their investments after the split.
Nvidia Stock Split Forecast: What Analysts Predict
Nvidia is getting ready for a stock split, and experts are upbeat about its future. They think the split will be good for investors, with many predicting a big price jump. They estimate Nvidia’s stock could hit $177.08 in 12 months, a 29% increase from now.
Nvidia’s latest earnings report was impressive, with a 93.6% revenue jump year-over-year. This strong performance boosts the split forecast and makes Nvidia a solid investment choice.
While Nvidia shares have dropped 23% on average after splits in the past, the current situation looks different. The last split, on May 22, 2024, made shares more accessible. Analysts say shares went up by about 25% after that split, sparking interest in future gains.
The P/E ratio is 55x, with a 50% growth forecast for the next five years. This growth outlook is key to analysts’ positive views on Nvidia, even with some warning of possible dips.
Nvidia Stock Split Ratio Explained
Nvidia has announced a 10-for-1 stock split ratio. This means each share now turns into ten. It’s important for investors to understand this, as it changes how many shares they have without changing the total value. Now, investors have more shares, but each share costs less.
For instance, a stock at $1,200 before the split will now cost about $120. This makes the number of shares go up ten times, while the price per share goes down by the same amount.
This change makes Nvidia’s stock more affordable for many investors. The news was well-received, with Nvidia’s stock price jumping 7% at the opening bell. It quickly rose over $1,000 after the market opened.
Here’s a summary of the key changes after the stock split:
| Parameter | Before Split | After Split |
|---|---|---|
| Stock Price | $1,200 | $120 |
| Total Outstanding Shares | 1 billion | 10 billion |
| Market Capitalization | $1.2 trillion | $1.2 trillion |
This is Nvidia’s sixth stock split, showing its big growth. The stock value has gone up 243% in the last year. This split is a smart move to keep investors interested.
Conclusion
The Nvidia stock split on June 7, 2024, is a big deal. It will make it easier for investors to buy shares. This change could also make trading more active, thanks to Nvidia’s big role in AI and data centers.
Nvidia has said they will split their stock, but they haven’t talked about future splits. Past splits have often led to big gains, with stocks going up about 25% in a year. This is better than the overall market. Investors should watch the market and Nvidia’s growth closely.
Nvidia is growing fast, but they also face market ups and downs. It’s important for investors to understand how the company is doing. With its history of innovation and big share in the GPU market, Nvidia is a good choice for investors.