Nvidia announces 10-for-1 stock split, shares hit $1,000
Nvidia is rolling out a 10-for-1 stock split, cashing in on the AI boom it has been driving and giving investors a hefty nugget.
The stock has advanced over 91% this year, closing at $949.50 per share on Thursday in the extended session shares rose past the $1,000 mark.
Post split, which is effective on June 7, 2024, one Nvidia share would be worth $94.95. Nvidia shares have risen over 231,485% since its IPO in January 1999.
The announcement came as first quarter revenue of $26 billion, up 262% from the same period a year ago, beat estimates of $24.6 billion, as tracked by LSEG. The company also delivered a higher-than-expected second quarter revenue forecast of $28 billion compared to a $26 billion estimate.
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Nvidia is considered the poster child for AI leading other rivals including Meta and Google under the direction of CEO Jensen-Huang who is also the company's largest individual shareholder, owning nearly 4% of company shares, as tracked by Thomson Reuters.
"The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence," said Huang in the earnings announcement.
Stock splits are in vogue this year as companies with high-priced shares roll out these divides, rewarding current investors and enticing new ones.
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Chipotle's board of directors approved a 50-for-1 split of its common, shareholders of record as of June 18 will receive the additional shares after the market closes on June 25.
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The burrito maker followed a similar move by Walmart earlier this year. The nation's largest retailer split its shares 3-for-1 in February so more employees could be shareholders. CEO Doug McMillon said it follows the mission of the retailer's founder.