Power stocks up, SaaS challenges and awaiting AI updates at Apple's event

Nvidia's 10-for-1 stock split was announced as part of its first-quarter earnings release in 2024. The company reported an over 260% increase in revenue compared to the first quarter in 2023, and data center revenue jumped 427% from the previous year to $22.6 billion, fueled by the demand for generative AI training. This strong performance pushed Nvidia's stock price above $1,100 per share.

Initially, Nvidia's stock price climbed after the earnings release, and the stock split took effect after the market closed on June 7, 2024. Investors who held Nvidia stock after the market close on June 6 received nine additional shares per share owned, with the share prices splitting on a 10-to-one basis3. Trading on the split basis began on June 10, 2024.

The stock split made Nvidia stock ownership more accessible to employees and investors2. For each share of Nvidia stock a shareholder owned, they received 10 shares worth $110 each after the split, so the total value of the investment remained unchanged.

Following the stock split, Nvidia's stock continued to perform well, driven by the strong business and operating performance that fueled the stock price increases in the first place. The company's upcoming fiscal second quarter saw management guiding for revenue of $28 billion, which would represent year-over-year growth of 107%. The adoption of generative AI, which is expected to continue by leaps and bounds, added between $2.6 trillion and $4.4 trillion to the economy in the coming years, according to global management consulting firm McKinsey & Company.

In summary, Nvidia's 10-for-1 stock split initially made the stock more accessible to employees and investors, and the company's strong business and operating performance continued to drive its stock price higher after the split4.

In the data center buildout and power generation themes, several companies showed notable trading activity. These include:

1. Eaton: This company traded more than 2% higher at one point on Monday after pulling back more than 5% last week.
2. Dell Technologies: As part of the data center buildout complex, Dell Technologies also experienced some trading activity.
3. Vertiv: Another company in the data center buildout complex, Vertiv was also involved in the trading activity.
4. Super Micro Computer: This company is also part of the data center buildout complex and saw some trading activity.
5. Dover Corp: Although to a lesser extent, Dover Corp is also involved in the data center buildout complex and experienced trading activity.

In the power generation theme, the following companies experienced notable trading activity:

1. Vistra Energy: This power generation company saw some trading activity.
2. Constellation Energy: Along with Vistra Energy, Constellation Energy also experienced trading activity in the power generation theme.
3. GE Vernova: Another company in the power generation theme, GE Vernova, was involved in the trading activity.

Jim Cramer also mentioned that "The worry about data centers and the Justice Department is forgotten as of today, with Enphase, Constellation on fire." This indicates that both Enphase and Constellation Energy experienced strong trading activity.