Nvidia, a leading company in the tech industry, announced a significant decision on Wednesday that will impact its investors. The company revealed a 10-for-1 stock split aimed at making its shares more accessible to individual investors. This move comes as Nvidia’s stock price has skyrocketed in recent years, closing at $949.50 on Wednesday.
The stock split news coincided with Nvidia’s quarterly earnings report, showcasing impressive growth figures. The company reported a remarkable 262% increase in revenue and a staggering 462% rise in profits year-over-year, as reported by CNN. Following this announcement, Nvidia’s shares saw a 4% increase in after-hours trading. The post-split shares are set to begin trading on June 10.
Nvidia’s success can be attributed to the high demand for its AI chips, which play a crucial role in generative AI systems. Despite facing competition from tech giants like Amazon and Alphabet, Nvidia continues to dominate the AI chip market.
Analysts were not taken aback by Nvidia’s stellar earnings, pointing to the significant investments made by companies such as Microsoft, Meta, and Alphabet in AI infrastructure. Nvidia’s projection of a 107% revenue increase year-over-year for the current quarter indicates a rosy outlook for the company’s future performance.
