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Nvidia’s recent 10-for-1 stock split is now in effect, giving investors nine additional shares for every share they held as of last Thursday. Following the split, Nvidia’s shares began trading at a new, adjusted price, dipping slightly to $119.77 shortly after the market opened on Monday.
A Closer Look at Nvidia’s 10-for-1 Stock Split:
Nvidia’s 10-for-1 stock split is designed to make its shares more accessible to everyday investors. This split changed Friday’s closing price from $1,208.88 to $120.88. Despite this adjustment, Nvidia’s incredible rise shows no signs of slowing. The stock has more than doubled in value this year alone, following a tripling in 2023. This phenomenal growth briefly propelled Nvidia past Apple last week, making it the second most valuable company in the U.S., with its market value soaring past $3 trillion.
Stunning Growth Amid AI Boom:
Nvidia’s success is largely driven by the skyrocketing demand for its semiconductors. These are essential for powering artificial intelligence applications. This surge in demand has caused Nvidia’s revenue to skyrocket. In the most recent fiscal quarter, Nvidia reported an impressive $26 billion in revenue, more than triple the $7.2 billion from the same period last year.
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Key Metrics and Market Position:
Here are some key figures that highlight Nvidia’s impressive performance and market standing following the 10-for-1 stock split:
- $3.011 Trillion: Nvidia’s total market value as of last Wednesday. This year alone, the company has overtaken Amazon and Alphabet to become the third most valuable public company, behind only Microsoft ($3.168 trillion) and Apple ($3.029 trillion). Just two years ago, Nvidia was valued at around $418 billion.
- $147 Billion: The one-day increase in Nvidia’s market value last Wednesday, a clear testament to its rapid growth.
- 10-for-1: The ratio of Nvidia’s recent stock split. This move has made Nvidia’s shares more affordable, especially for individual investors. Before the split, Nvidia’s stock was one of only 11 companies in the S&P 500 with a share price over $1,000, closing at $1,224.40 last Wednesday.
- $26 Billion: Revenue for Nvidia’s most recent fiscal quarter, a remarkable increase from the $7.2 billion reported a year earlier. Wall Street projects Nvidia’s revenue to hit $117 billion in fiscal 2025, nearly doubling the expected revenue for 2024 and more than four times the earnings from two years ago.
- 53.4%: Nvidia’s estimated net margin, meaning about 53 cents of every dollar in revenue contributes to the company’s profit. For comparison, Apple’s net margin was 26.3% in its most recent quarter, and Microsoft’s was 36.4%. Though these companies have higher overall revenue, Nvidia’s profitability is particularly impressive.
Future Outlook:
Nvidia continues to innovate and expand its product offerings. This solidifies its position as a leader in AI technology. CEO Jensen Huang recently announced an upgraded version of Nvidia’s Blackwell AI platform, called Blackwell Ultra, expected in 2025. Additionally, a new platform called Rubin is set for release in 2026, with an Ultra version of Rubin planned for 2027.
As Nvidia continues to evolve and grow, it remains at the forefront of the AI revolution. This drives both technological advancements and significant financial returns for its investors.