Nvidia stock rises after 10-for-1 stock split
What new developments did Nvidia CEO Jensen Huang announce regarding future hardware platforms?
Nvidia CEO Jensen Huang announced upgraded versions of the company's AI platforms, Blackwell Ultra and Rubin, as well as an entirely new platform called Rubin set for 2026. The Blackwell Ultra is expected to be released in 2025, while the Rubin platform is scheduled for 2026. In 2027, the company will release an Ultra version of the Rubin hardware. These developments aim to keep customers coming back for more as the demand for AI hardware continues to grow.
How does a stock split affect the affordability of shares for individual investors?
A stock split affects the affordability of shares for individual investors by reducing the price of individual shares without diluting the value of existing shareholders' total holdings. When a company announces a stock split, the price of each individual share decreases proportionately. For example, if a company declares a 2-for-1 stock split, the price will be halved4. This adjustment aims to make the stock more affordable for individual investors, increasing liquidity and attracting a broader range of potential shareholders4.
In the case of Nvidia's 10-for-1 stock split, the shares' Friday closing price of $1,208.88 was revised to $120.88, making the stock more accessible to retail traders and increasing its reach. As a result, stock splits can often lead to a positive impact on investor sentiment and potentially drive up demand and prices, as shares become more affordable and attractive to a wider range of investors.
What was the market reaction on the first day of trading after Nvidia's stock split?
On the first day of trading after Nvidia's 10-for-1 stock split, the market reaction was positive. Nvidia stock (NVDA) began trading on the new split basis, with the shares' Friday closing price of $1,208.88 revised to $120.88. The stock closed up nearly 1% in its first day following the split. The split made owning shares of Nvidia more affordable by lowering the price of individual shares without diluting the value of existing shareholders' total holdings.