NVIDIA (NVDA) announces a 10-to-1 stock split, increases dividend
NVIDIA's upcoming stock split will go into effect starting in the first week of June 2024.
The NVIDIA company remains one of the most dynamic and well-performing companies in a world where artificial intelligence and graphics technology are ongoing crazes, so it should come as no surprise that all eyes were on the company as it announced its Q1 2025 earnings results. The company had a lot of interesting information to share, but notable among that info was the announcement of a 10-to-1 stock split, which is going to make way for increased dividend once the split is complete.
NVIDIA announced the stock split and increased quarterly cash dividend in its Q1 2025 earnings results posted on its investor relations website this week. The action will split NVIDIA’s issued common stock into 10 shares for every one currently existing share with the aim of making the stock more accessible employees and investors. The split will go into effect starting on June 7, 2024. Additionally, quarterly cash dividends will be raised 150% to $0.01 per share on a post-split basis.
NVIDIA continues to be one of the star players in the AI landscape. Its technology powers a wealth of artificial intelligence technologies in various sectors of tech, including graphics technology, generative AI, medical tech application, and much more. Pair this with its cutting-edge products in GPU and CPU space allowing for ray-traced visuals and more, and NVIDIA has a bustling business that is raking in cash for the company to continue to grow and expand.
With the new stock split coming up in June, it will be interesting to see what comes next for NVIDIA. For this and more earnings results reporting out of the tech and gaming industry, stay tuned here at Shacknews for the latest.
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TJ Denzer posted a new article, NVIDIA (NVDA) announces a 10-to-1 stock split, increases dividend
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AMD has AI accelerators too and eventually intel and if this market really does grow for ever then these firms will invest in their own chip designs. It’s also possible that there are diminishing returns at throwing more hardware at the problem, that the bottleneck is how these models are trained rather than raw horsepower.
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NVDA is not a get-rich-quick stock to buy now. However, you won't lose if you invest in it now. They are dominating the AI chip market by a long shot, and they will continue to dominate for years to come. The stock split is inconsequential. It merely gives the illusion that the stock is cheaper to buy into. It really doesn't matter, as you can currently buy fractions of a share now, and when it splits, you will own 10x that for 1 tenth the value per share. It's inevitably a smart buy, and it will be for the next 3-5 years before there is any threat of competition. Just keep in mind, this is a long term growth stock that will make you $ in the long run.
There is a chance that the split will pump up the stock a bit in the short run, but don't count on it. And don't get discouraged if it drops... It will pay out in the long run. -
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My opinion on buying before or after a split is this: sometimes before a split, you have an artificially created period of low volatility, between the date of record and when the split actually occurs. Now, if you happen to be borrowing against your holdings, trading on margin, etc. this is great. Chances are high that within that window, you can do whatever and not worry about an unexpected dip.
For an individual investor, probably not a major selling point, but if you have need for creative financing against your holdings for whatever reason, it’s a handy factor to consider.
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