Nvidia Corporation co-founder and CEO Jensen Huang at the Nvidia GPU Technology Conference (GTC) in San Jose, California, USA, on Tuesday, March 19, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Nvidia Announcing a 10-for-1 forward stock split first fiscal quarter It releases its financial results on Wednesday. It was revealed that the stock will begin trading on a split-adjusted basis at the open on June 10. freed.
A stock split does not change a company’s financial fundamentals, but it makes the price per share cheaper, which may have a positive psychological impact on retail investors. Nvidia said the stock split will make ownership “more accessible to employees and investors,” according to the press release.
Nvidia shares closed Wednesday at $949.50. Based on that price, a 10-to-1 split would work out to $94.95 per share, although investors would have to purchase 10 shares to own the same number of shares of the company as they currently own one share. letter, Amazon and Tesla All the well-planned stock splits in 2022.
Nvidia shares rose nearly 4% in after-hours trading on Wednesday.
Each holder of Nvidia common stock will receive an additional nine shares of common stock, which will be distributed after the market close on Friday, June 7, the company said.
Nvidia investors have enjoyed a historic run over the past five years, with the stock soaring 25-fold. The company has long been considered a major maker of advanced graphics processing units (GPUs) for video games, but has recently become a central hardware player in the artificial intelligence boom.
NVIDIA’s first fiscal quarter revenue increased by 262% year-on-year, growing by more than 200% for the third consecutive quarter.
The chipmaker also said it would increase its quarterly cash dividend from 4 cents per share to 10 cents ahead of the split. After the split, the dividend will be one cent per share.
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