NVIDIA Corp announces 10-to-1 stock split

As Artificial Intelligence (AI) continues to dominate the tech industry, the stock prices of chipmakers such as Nvidia, whose Graphics Processing Units (GPU) are considered the standard, have benefited.
 

With its historic ascent to the peak, Nvidia is now a leading player, beating its rivals by a mile, in both stock value and tech development. Since its IPO in 1999 at $0.25, Nvidia’s stock price has soared to $1,065, as of 27 May 2024.
 

The 425900% increase in stock price is one of the reasons experts cited as to why Nvidia Corp announced a 10-to-1 split effective on 7 June 2024.
 

What is a stock split?
 

A stock split is a corporate action where a company increases the number of its outstanding shares by issuing more shares to existing shareholders. This is usually considered by economists as a good indicator that the company shares are pricing well.
 

In simpler terms, the company multiplies the number of shares existing shareholders have. The stock price is also “split” or divided by that number.
 

In Nvidia’s case, a 10-to-1 split would mean NVDA.O shareholders will receive 9 extra shares by 7 June 2024 for every share they hold on 6 June 2024. Subsequently, the stock price is divided by 10, meaning if the stock price is $1,100 by the stock split, it would trade at $110.
 

Here is an example for easier reference. Let’s assume a trader holds 5 company shares by 6 June 2024:
 

What does it mean for traders?
 

As you can see from the example below, splitting the stock doesn’t necessarily affect the company’s market value. However, it does make trading shares affordable. With NVDA.O’s stock price getting divided by 10, expect volatility and price swings prior, leading to, and after, the stock split as it becomes more accessible to a wider network of retail traders.
 

Additionally, with more traders participating in NVDA.O trading due to its smaller capital requirement, this stock split is expected to increase the company’s liquidity.
 

How to trade NVDA.O with ThinkMarkets?
 

Go long (buy) or short (sell) NVDA.O stocks with ThinkMarkets. With price shifts and volatility expected heading towards the announced split stock dates, opportunities to trade will be plenty.
 

Join the public clamour for NVDA.O stocks by logging in to ThinkTrader today!

FAQs

what happens to my open positions at the time of the split?

The number of shares you hold will increase by the split ratio. For instance, if you hold 100 shares and there's a 2-for-1 split, you'll end up with 200 shares.
 

what happens to my pending orders at the time of the split?

All pending orders will also be adjusted by the split ratio.
 

Do you need to take any action?

No, we will automatically adjust your holdings and pending orders to reflect the stock split. You don't need to take any manual action.

Are there any additional questions we should add in?