By Ryan Caldwell 
NVDA Stock Split, NVIDIA Corporation (NVDA), a global leader in graphics processing units (GPUs) and artificial intelligence (AI) technology, has been a darling of the stock market, driven by its pivotal role in AI, gaming, and data centers. In June 2024, NVIDIA executed a high-profile 10-for-1 stock split, capturing the attention of investors worldwide. This move, the sixth in the company’s history, aimed to make shares more accessible to a broader range of investors.
This article dives into the NVDA stock split, explaining what it means, why it happened, its impact on investors, and what to expect moving forward. Written in clear, user-friendly language, this guide is designed for both novice and seasoned investors looking to understand this significant event and its implications.
What Is a Stock Split?
Before exploring the NVDA stock split, let’s clarify what a stock split is. A stock split is a corporate action where a company divides its existing shares into multiple shares to lower the price per share. This doesn’t change the company’s overall market value (market capitalization) or an investor’s total holdings value—it simply increases the number of shares while proportionally reducing the price per share.
For example, in a 10-for-1 stock split, like NVIDIA’s, if you owned one share worth $1,000 before the split, you’d own 10 shares worth $100 each after. The total value remains $1,000, but the lower price makes the stock appear more affordable, potentially attracting more investors and increasing trading liquidity.
Stock splits are often seen as a sign of confidence from management, signaling that the company expects continued growth. They can also make shares more appealing to retail investors and employees participating in stock purchase plans.
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The NVDA Stock Split: Key Details
On May 22, 2024, NVIDIA announced a 10-for-1 stock split alongside its first-quarter earnings report, which showcased a staggering 262% year-over-year revenue increase to $26 billion, largely driven by AI data center demand. The NVDA stock split was executed as follows:
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Record Date: Shareholders of record by market close on June 6, 2024, were eligible.
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Distribution Date: Nine additional shares were issued for each share held after market close on June 7, 2024.
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Trading Date: Shares began trading on a split-adjusted basis on June 10, 2024, at roughly one-tenth the pre-split price.
Before the split, NVIDIA’s stock price had soared past $1,000, closing at $949.50 on May 22 and climbing above $1,150 post-announcement. After the split, the price adjusted to around $120 per share, making it more accessible to retail investors. This was NVIDIA’s sixth stock split since its 1999 IPO, following splits in 2000, 2001, 2006, 2007, and 2021.
Alongside the split, NVIDIA raised its quarterly dividend by 150%, from $0.04 to $0.10 per share pre-split, equating to $0.01 per share post-split, further rewarding shareholders.
Why Did NVIDIA Split Its Stock?
The NVDA stock split was driven by several strategic goals:
1. Increased Accessibility
At over $1,000 per share, NVIDIA’s stock was out of reach for many retail investors and employees. The split lowered the price to around $120, making it easier for smaller investors to buy whole shares. NVIDIA explicitly stated the split was “to make stock ownership more accessible to employees and investors.”
2. Boosted Liquidity
A lower share price typically increases trading volume, as more investors can participate. This enhances liquidity, making it easier to buy and sell shares without significant price swings. The split attracted retail investors, contributing to a 7% surge in NVDA’s stock the day after the announcement.
3. Psychological Appeal
High share prices can create a perception of expensiveness, even if the stock is fairly valued. A lower price post-split makes the stock seem more approachable, potentially drawing in new investors.
4. Index Considerations
Price-weighted indexes like the Dow Jones Industrial Average (DJIA) avoid high-priced stocks, as they disproportionately influence the index. NVIDIA, which joined the Dow in November 2024, benefits from a lower share price to maintain balanced influence. However, its post-split price of around $120 is already competitive within the Dow, reducing immediate pressure for further splits.
5. Signal of Confidence
Stock splits often signal management’s optimism about future growth. NVIDIA’s booming AI-driven revenue—$22.6 billion from data centers alone in Q1 2025—underscored its strong fundamentals, justifying the split as a bullish move.
NVIDIA’s Stock Split History
NVIDIA’s six stock splits reflect its remarkable growth since its 1999 IPO. One share purchased before the first split in 2000 would now equal 480 shares due to cumulative splits. Here’s a brief overview:
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June 27, 2000: 2-for-1 split.
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September 12, 2001: 2-for-1 split.
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April 7, 2006: 2-for-1 split.
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September 11, 2007: 3-for-2 split.
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July 20, 2021: 4-for-1 split.
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June 10, 2024: 10-for-1 split.
These splits often followed periods of strong performance, such as the 2021 split during the cryptocurrency and gaming boom or the 2024 split amid AI-driven growth. However, historical data shows mixed post-split performance, with NVIDIA averaging an 8% gain six months after splits but a 23% decline after one year, often due to market corrections.
How the NVDA Stock Split Affects Investors
The NVDA stock split has several implications for investors, both immediate and long-term.
For Existing Shareholders
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No Value Change: The total value of your investment remains the same. For example, 10 shares at $1,200 pre-split become 100 shares at $120 post-split, still worth $12,000.
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Increased Shares: You receive nine additional shares per share owned, boosting your share count but not your ownership percentage in the company.
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Dividend Adjustment: The increased dividend of $0.01 per share post-split means the same total payout, just spread across more shares.
For New Investors
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Lower Entry Point: The reduced share price makes NVIDIA more affordable, especially for those who couldn’t buy at $1,000+. This can attract new investors, potentially driving demand.
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Fractional Shares: Many brokerages offer fractional shares, but whole shares at a lower price are often more appealing to retail investors.
Market Perception
The NVDA stock split was met with enthusiasm, with shares rising 30% from the announcement on May 22 to mid-June 2024. However, splits don’t inherently change a company’s value, and some analysts caution that post-split enthusiasm can fade if fundamentals don’t support the hype.
Portfolio Strategy
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Long-Term Holders: If you believe in NVIDIA’s AI and data center growth, the split doesn’t alter your strategy. Hold for potential appreciation, as analysts predict 108% earnings growth in 2025.
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Traders: Splits can create short-term volatility due to increased trading volume. Some traders capitalize on pre- or post-split price movements, but timing the market is risky.
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Diversification: With NVIDIA’s high valuation (33 times forward earnings), ensure your portfolio isn’t overly concentrated in one stock to manage risk.
Will NVIDIA Split Its Stock Again in 2025?
As of April 2025, another NVDA stock split seems unlikely in the near term. At around $120–$138 per share, the stock is accessible to most investors, far from the $1,000 psychological barrier that often prompts splits. Additionally, NVIDIA’s massive $3.55 trillion market cap means a future split would require an extraordinary price surge—potentially a 10-fold increase to justify a 10-for-1 split, implying a $34 trillion market cap, which is unprecedented.
However, several factors could influence a future split:
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Price Surge: If NVIDIA’s stock climbs significantly, say to $500+, due to AI or data center growth, management might consider a split.
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Market Conditions: A bullish market or sustained AI demand could push prices higher, making a split more appealing.
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Strategic Goals: NVIDIA may split to maintain Dow compatibility or attract more retail investors during a growth phase.
Analysts suggest NVIDIA’s management will likely wait for market volatility to stabilize before considering another split, with no confirmed plans for 2025.
Risks and Considerations
While the NVDA stock split was a positive signal, investors should be aware of potential risks:
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Post-Split Performance: Historical data shows NVIDIA’s stock often declines 23% one year after splits, possibly due to market corrections or overhyped expectations.
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Market Volatility: The Nasdaq’s bear market dip in April 2025 highlights broader market risks that could affect NVIDIA.
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High Expectations: NVIDIA’s lofty earnings forecasts (108% growth in 2025) leave little room for error. A miss could trigger a sell-off.
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Overvaluation Concerns: At 33 times forward earnings, some argue NVIDIA is pricey compared to competitors, though its AI dominance justifies the premium for many.
To mitigate risks, diversify your portfolio, monitor NVIDIA’s earnings (next report: February 26, 2025), and align investments with your risk tolerance.
Why Invest in NVIDIA Post-Split?
Despite risks, NVIDIA remains a compelling investment due to:
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AI Leadership: NVIDIA holds over 90% market share in AI chips, powering platforms like ChatGPT.
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Revenue Growth: Data center revenue surged 427% year-over-year to $22.6 billion in Q1 2025, with more growth expected from its Blackwell platform.
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Innovation: Annual GPU updates and expansion into robotics and self-driving tech ensure long-term relevance.
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Analyst Optimism: Experts predict strong earnings growth, with some seeing NVIDIA outpacing the S&P 500 over five years.
The NVDA stock split has made it easier to invest in this tech giant, offering a lower entry point without altering its strong fundamentals.
Real-World Impact
The NVDA stock split resonated with investors like Sarah, a retail investor who bought 10 post-split shares at $125, thrilled to own a piece of NVIDIA without spending thousands. Meanwhile, long-term holder Raj, who owned 50 shares pre-split, now holds 500 shares, maintaining his $60,000 investment value but with more flexibility to sell or hold. These stories highlight how the split broadened NVIDIA’s investor base while rewarding existing shareholders.
Conclusion
The NVDA stock split in June 2024 was a strategic move to make NVIDIA’s shares more accessible, boost liquidity, and signal confidence in its AI-driven future. While it doesn’t change the company’s underlying value, it has opened doors for new investors and reinforced NVIDIA’s position as a market leader. By understanding the split’s mechanics, historical context, and implications, you can make informed decisions about investing in NVIDIA. Whether you’re eyeing short-term trades or long-term growth, the NVDA stock split marks an exciting chapter in NVIDIA’s journey. Stay informed, diversify wisely, and consider NVIDIA’s role in your portfolio as AI continues to shape the future.
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Frequently Asked Questions (FAQs)
1. What does the NVDA stock split mean for my investment?
The NVDA stock split increases your share count (e.g., 1 share becomes 10 in a 10-for-1 split) while reducing the price per share, keeping your total investment value the same. It makes shares more affordable and may increase liquidity but doesn’t alter NVIDIA’s fundamentals.
2. Will NVIDIA’s stock price rise after the 2024 split?
While the NVDA stock split saw a 30% rise post-announcement, historical data shows mixed results, with an average 23% decline one year after splits. Future performance depends on NVIDIA’s earnings, AI demand, and market conditions.
3. Is another NVDA stock split likely in 2025?
A 2025 split is unlikely, as NVIDIA’s post-split price (~$120–$138) is accessible, and its $3.55 trillion market cap makes a significant price surge needed for another split improbable soon. Analysts see no confirmed plans.