Nvidia Has Completed Its 10-for-1 Stock Split: Here's Why I'm Still Not Touching This Artificial Intelligence (AI) Titan With a 10-Foot Pole
One of the most anticipated events of the year is officially over. Less than 24 hours ago, following the close of trading on Friday, June 7, the infrastructure backbone of the artificial intelligence (AI) revolution, Nvidia (NASDAQ: NVDA), completed its 10-for-1 forward split.
A "stock split" is an event which allows publicly traded companies to cosmetically alter their share price and outstanding share count by the same magnitude. It's cosmetic in the sense that stock splits have no effect on a company's market cap or operating performance. stock splits can make shares more nominally affordable for retail investors, as with a forward-stock split. They can also increase a company's share price to ensure continued listing on a major stock exchange, as seen with a reverse-stock split.
Investors have been gravitating to stock-split stocks over the last three years because they have a history of outperforming. More than a dozen high-flying stocks have announced and/or enacted forward-stock splits since the midpoint of 2021, including Nvidia, which just completed its second split since July 2021.
Source Fool.com
