Nvidia Stock Splits 10-for-1, Giving Investors More Shares

Lower Stock Price, Unchanged Value

Nvidia's stock split, effective today, grants investors nine additional shares for every one they currently hold. Despite the increase in share count, the total value of each investor's holdings remains unchanged.

Reason for Split

The split was announced alongside Nvidia's first-quarter earnings report, which revealed strong financial performance. By lowering the stock price, the split makes it more accessible to a broader range of investors.

First Split in Two Years

This is Nvidia's first stock split since July 2020. The previous split was also a 10-for-1 distribution.

Trading Details

Nvidia stock closed at $122.44 per share on Wednesday. After the split, the adjusted price will be approximately $12.24 per share. Trading on the split-adjusted basis will commence on Monday.

Market Impact

While the stock split does not inherently change the company's value, it may have psychological and practical impacts on the market. Lower stock prices can attract retail investors and increase liquidity, potentially leading to increased trading volume.