Nvidia is rolling out a 10-for-1 stock split and is capitalizing on the AI boom it has been driving, giving investors huge profits.
The stock is up more than 91% so far this year, with shares rising above the $1,000 mark in the extended session and closing at $949.50 per share on Thursday.
After the split, which will take effect on June 7, 2024, each Nvidia share will be worth $94.95.
The announcement came as first-quarter sales as tracked by LSEG rose 262% year over year to $26 billion, beating expectations of $24.6 billion. The company also forecast second-quarter sales of $26 billion, which exceeded expectations at $28 billion.
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Under the direction of CEO Jensen Huang, who owns about 4% of the company and is also the company’s largest individual shareholder, NVIDIA is the leading AI leader ahead of other rivals including Meta and Google, according to a Thomson Reuters survey. considered a company.
“The next industrial revolution has begun. Companies and countries are partnering with NVIDIA to move $1 trillion of traditional data centers to high-speed computing and create new types of data centers to produce a new commodity: artificial intelligence. We are building a data center, an AI factory,” Huang said in the earnings call.
Stock splits have been all the rage this year, with companies with highly priced shares rolling them out to reward current investors and attract new ones.
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Chipotle’s Board of Directors has approved a 50-for-1 split of its common stock, with shareholders of record as of June 18 receiving additional shares after market close on June 25.
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Burrito maker Walmart took a similar action earlier this year. The nation’s largest retailer split its stock 3-for-1 in February, allowing more employees to become shareholders. CEO Doug McMillon said this follows the mission of the retailer’s founders.
