Nvidia Corporation (NVDA) recently completed a 10-for-1 stock split, making its shares more accessible to retail traders. The split adjusted the stock price from $1,208.88 to $120.88, allowing existing shareholders to hold ten times more shares. On the first day of trading following the split, Nvidia’s stock closed up nearly 1%
The Significance of the Split
Stock splits are often viewed as a sign of strength. In the year following a split announcement, companies tend to outperform the S&P 500. On average, stocks rise 25% during this period, compared to the S&P 500’s average return of 12%. For Nvidia, the split comes after the company’s total market valuation briefly surpassed $3 trillion, making it the second-most valuable publicly traded US company, ahead of Apple
Analysts’ Price Targets
Several analysts raised their price targets for Nvidia after the stock split. Barclays, for instance, updated its price target to $145, up from a split-adjusted $120 or $1,200 before the split. This reflects optimism about Nvidia’s growth prospects, driven by the explosion of interest in generative AI. Hyperscalers like Amazon, Google, and Microsoft have been vying for Nvidia’s hardware to power their AI platforms, leading to substantial revenue growth for the company
Continued Innovation
Nvidia remains committed to innovation. CEO Jensen Huang announced an upgraded version of its Blackwell AI platform, called Blackwell Ultra, set to launch in 2025. Additionally, a new platform called Rubin is planned for 2026, followed by an Ultra version of the Rubin hardware in 2027.
In summary, Nvidia’s stock split opens up opportunities for retail traders, and the company’s strong performance continues to attract attention. As the generative AI landscape evolves, Nvidia’s position remains robust, with analysts bullish on its future prospects.
