Shares of Nvidia Inc. opened trading around $120 on Monday morning after the semiconductor giant announced it was splitting its stock.
Nvidia’s 10-for-1 stock split caused the company’s stock price to fall 10%, from around $1,200. The split made Nvidia shares more affordable without diluting investors’ holdings or the company’s value.
The chipmaker’s shares fell slightly to $117.60 on Monday morning after opening at $120.35, but recovered to $122.38 by late morning.
Nvidia, whose processors are in high demand among companies developing artificial intelligence, reached a market capitalization of $3 trillion for the first time last week, overtaking Apple to become the world’s second-largest company.
The milestone marks the latest in rapid growth for NVIDIA, which reached the $1 trillion milestone last year and the $2 trillion milestone just a few months ago.
The company’s chips are playing a central role in powering the AI boom as big tech companies race to develop and release their own AI models. But Nvidia’s dominance has come under scrutiny from federal regulators, and the Department of Justice (DOJ) is reportedly investigating the company.
Other companies that have played a major role in the AI boom, Microsoft and OpenAI, are also reportedly under investigation by the Federal Trade Commission (FTC).
