Here’s how Nvidia’s 10-for-1 stock split will work

Semiconductor giant Nvidia (NVDA) is set to initiate its highly anticipated 10-for-1 stock split after the market closes on Friday. This strategic move will result in 10 times as many shares of Nvidia common stock at a lower price for individual shares.

Yahoo Finance’s Jared Blikre delves into the details, providing insights into how Nvidia’s stock has historically performed in the wake of previous splits.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

We’re also watching shares of NVIDIA this morning.

Ticker symbol NVD A.

The chip giant stock about to get a little bit more affordable.

The company is set to complete its highly anticipated 10 for one stock split after the market closes today.

Yahoo Finance’s Jared B bookery here to track the moves ahead of the split.

Hey, Jared.

Hey, Brad, uh, this gives us the opportunity to do some fun.

Math.

Uh, fortunately, it’s pretty easy.

Uh, if you’re an NVIDIA shareholder and you hold one share on Monday morning, you’re going to have 10 shares.

If you own 100 it will be 1000.

But if you take a look at the share price right now, that’s going to be lopped off by 10.

So 102 109 98 that’s going to become 100 $20 actually, $121 because you’d have to round it up so the share price will be adjusted such that the total market capitalization should not be affected.

But here is a five year chart of NVIDIA.

They already did one stock split.

A few years ago.

It was a four for one split in 2021.

That’s this line right here.

And I’ll put a line chart on so you can see this a bit better.

Um, after they announced that and they did that at their May shareholder meeting, Uh, when they announced their earnings there, the stock doubled in price into the end of the year.

And then what happened after that?

Well, the world fell into a bear market, and, uh, NVIDIA actually got, uh, two thirds of its share price just lopped off.

That was a pretty big hit to it.

But once it found its footing in late 2022 until the current day, that is a 10 times increase in share price.

So forgive the handwriting there, but that is 1000% of what it was.

That’s pretty impressive.

Now I think we can also look at some of the other people, other members in the semiconductor space.

This is actually our mega caps, but this gives us an opportunity to show how NVIDIA’s ranking has changed over the last few years.

Now NVIDIA right here is number three, and you can see it’s sitting right next to Apple.

It has changed places with Apple a little bit, and it’s also closed above $3 trillion Once a couple of days ago, we’ll have to see if that can be repeated.

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But I remember when NVIDIA was all the way over here or all the way up here, and it’s been impressive to see this meteoric rise.

I don’t think a company has ever increased in value this quickly before at these levels.