Stock-Split Watch: Is Nvidia Next?
The artificial intelligence (AI) chip leader Nvidia (NASDAQ: NVDA), which is now the largest company by market cap in the world, has yet to find a limit to how high its stock can go. Even after some challenges earlier in the year, the stock price is still up about 32% year to date (as of Aug. 12). It's also up over 67% in the past year and roughly 1,479% in the past five years.
Stocks that go on big, extended runs tend to be prime candidates for forward stock splits, and Nvidia has conducted stock splits before. Will another happen in the near future?
Forward stock splits and reverse stock splits are tools publicly traded companies can use to manage their stock prices or share counts for various reasons (both good and bad). However, stock splits do not change the market cap of a company, and therefore, they do not change an investor's equity position.
Source Fool.com
