Nvidia Announces Stock Split
Chipmaker to Divide Shares by 10-to-1
Effective May 22, 2024
Nvidia (NVDA) made headlines on Wednesday by becoming just the third U.S. company in the past year to announce a stock split. The chipmaker said it would divide its shares by a 10-to-1 ratio, meaning that each existing share will be converted into 10 new shares.
The split will take effect on May 22, 2024, for shareholders of record as of April 10, 2024. The company's stock closed trading at $122.44 per share on Wednesday. If the stock were to have split on that day, each new share would have been worth $12.24.
Companies often split their stocks to make them more affordable to a wider range of investors. Nvidia's stock has risen significantly in recent years, making it less accessible to some smaller investors. The split will also increase the liquidity of the stock, making it easier to buy and sell.
Nvidia's announcement comes as the tech sector is facing a downturn. The Nasdaq Composite Index has fallen by more than 30% from its peak in November 2021. Nvidia's stock has also declined, but it remains up by more than 50% over the past five years.
Despite the recent market volatility, Nvidia remains a strong company with a bright future. The company is a leader in artificial intelligence and graphics processing, two technologies that are expected to play a major role in the future of computing.
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