Nvidia has announced a 10-for-1 forward stock split, as revealed in its fiscal first-quarter earnings report on Wednesday. The split-adjusted shares will commence trading at market open on June 10.
Stock splits do not alter a company’s financial fundamentals but make individual shares more affordable, potentially appealing to retail investors. Nvidia’s statement highlighted that the split aims to make share ownership “more accessible to employees and investors.”
Nvidia shares closed at $949.50 on Wednesday. Post-split, each share would be priced at $94.95, though investors would need to purchase 10 shares to maintain the same ownership level. Other major companies, including Alphabet, Amazon, and Tesla, executed stock splits in 2022.
Following the announcement, Nvidia shares surged nearly 4% in extended trading. The company specified that each holder of Nvidia’s common stock will receive nine additional shares after market close on June 7, with trading on the split-adjusted basis starting the following Monday. Over the past five years, Nvidia’s stock has experienced a historic rally, increasing 25-fold. The company, initially recognized as a leading maker of advanced graphics processing units (GPUs) for video games, has recently become a central player in the artificial intelligence hardware sector.
Nvidia reported a remarkable 262% revenue increase in its fiscal first quarter compared to the previous year, marking its third consecutive quarter with growth exceeding 200%.
Additionally, Nvidia announced an increase in its quarterly cash dividend from 4 cents to 10 cents per share on a pre-split basis. Post-split, the dividend will be adjusted to 1 cent per share.
