Nvidia Announces 10-for-1 Stock Split After Earnings Surge. Nvidia, the leading chip maker, announced a 10-for-1 stock split as a strategy to make its shares more accessible after their value surged 25 times over the past five years. This move comes on the heels of a stellar earnings report, revealing an impressive 262% year-over-year revenue growth, closely following last quarter’s 265% growth.
For the April quarter, Nvidia reported sales of $26 billion, surpassing the consensus estimate of $24.7 billion. The data center business was a significant contributor, with its revenue soaring over 400% compared to the previous year, driven by the high demand for AI servers.
Following the earnings release, Nvidia’s shares surged 6% in after-hours trading and are set to open Thursday’s session above the $1,000 mark. This valuation highlights the dramatic growth of the company, where a $1,000 investment five years ago would now be worth $25,000.
Looking ahead, Nvidia projects its revenue for the current quarter to reach $28 billion, outpacing Wall Street’s forecast of $26.8 billion. To enhance share accessibility, Nvidia will implement the 10-for-1 stock split on June 10, reducing the share price by tenfold.
This stock split is a strategic move by Nvidia to attract more retail investors by lowering the per-share cost, aligning with common practices among large corporations aiming to broaden their investor base. Nvidia Announces 10-for-1 Stock Split After Earnings Surge.
