- General
- May 23, 2021
- 4 minutes read
Markets: Nvidia To Split Stock 4-To-1, Shares Rise
Chipmaking giant Nvidia has made a major market move in the form of a stock split. It’s said that it’ll split…
Chipmaking giant Nvidia has made a major market move in the form of a stock split. It’s said that it’ll split its shares 4-to-1, that is dividing each current share into four equal parts.
- Though it’s already initiated, Nvidia’s stock split is contingent on final approval from stockholders, which looks like no main hurdle as the split is beneficial to that party.
- With a 4-to-1 stock split, the price of a single Nvidia share will be divided from its current range by 4, making it cheaper and more accessible to investors. Nvidia benefits from it as it opens up access to more investors, especially on the retail side.
- Nvidia’s 4-to-1 split is its first stock split in nearly 14 years, after gains of over 1,600%. Before now, it had split its stock four times as a public company between 2000 and 2007, but a 4-to-1 ratio is its largest ever.
- On the news of its stock split, Nvidia’s shares rose by 3%. The company’s stock has been on a tear, gaining 12% this year after more than doubling in 2020.
- Nvidia has enjoyed great success as a chipmaking company, with new product lines coming out regularly and its existing products performing strongly on the market. The company’s main business is selling graphics processing units (GPUs) which are crucial in high-performance computers.
- Nvidia’s stock split is a major one among public tech companies this year. It follows respective splits by two major companies last year, Apple and electric carmaker Tesla.
