Nvidia announces 10-for-1 stock split. What does this mean?

In Nvidia's (NVDA) broad earnings beat reported on Wednesday, the chip giant announced a 10-for-1 stock split to be implemented for current shareholders on June 7. But what exactly is a stock split and what happens to company shares when one is approved?
Wealth! Host Brad Smith gives a thorough break down of what happens to corporate stock under a split and the incentive behind one.
For more of everything Nvidia, catch Yahoo Finance's exclusive interview with CEO Jensen Huang.
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[@MablePauls]

Is this a good moment to buy stocks? How long will it take us to recover? I know everyone claims equities are cheap. Is it preferable for me to invest my money elsewhere if there are tactics to be applied in this market that the typical individual cannot access?

[@SirBenjamin-oq1wd]

If the market has taught me anything, it's that it always recovers, but I can't seem to focus on the long run, when major factors like my retirement and my reserve are wreaking havoc on inflation. I require a solid data trajectory and solution as soon as possible.

[@Stephine-un5zs]

You're not doing anything incorrectly; you simply lack the expertise to capitalize in a down market. Professionals with extensive expertise who must have witnessed the 2008 crisis are the only ones who may profit significantly during turbulent times like this.

[@Manselus-mn1mn]

My portfolio has been in the gutter for the whole year, so I started researching new ways to profit in the market, but everything I attempted just seemed to miss the target. Please let us know the name of your financial advisor.

[@Stephine-un5zs]

Just research the name Angela Lynn Shilling. You’d find necessary details to work with a correspondence to set up an appointment.

[@Manselus-mn1mn]

Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

[@zezevibes]

Thank you! Very well simply explained.

[@user-xn1bo9rx5m]

2 weeks after split up or down ?

[@manojraavikrindi4606]

is it better to buy before stock split or after split?

[@mohammedal-r471]

before, I think the price will surge after the split

[@Chad_Max]

Right after but don’t wait too long…

[@dobriltanev9722]

BEFORE!!!!! Amazon did a 20:1 stock split and after the new shares were created the price jumped by 12% in 1 day! Also,the new shares were 100$ a piece. Now they are over 183,which is about 40% increase per year.... BUY BEFORE SPLIT! The price will increase A LOT after.

[@MatthewMS.]

The answers above are not correct.. there is no change to the value… for example after google and Amazon splits they went down soon after and people thinking it made a difference lost a lot of money. If it was that simple everyone would be very rich and know about it. This business is very complex and difficult. It’s very easy to lose your money.

[@skatetoexplorevideos2477]

From my experience the stock is lower after the split.

[@mrheng562]

They are pulling a Tesla move. Two split within two years.

[@MatthewMS.]

Tesla was “trust me… I got this shiny idea 💡… in 5 years”. Nvidia the last 5 years: under promise, over deliver…and Jensen just became a more mainstream name. I’m an Eagle’s 🦅 guy and 20 year Wall Street professional, we have a new Tom Brady here folks.

[@MatthewMS.]

I 💯% understand that I could be completely wrong and fail on that statement… but I’m not going to. I know exactly what I’m saying and have seen.

[@superblondeDotOrg]

Sure, I will buy 1,000 shares of Brad.

[@justinparrish3704]

what if you have a partial share?

[@justinparrish3704]

im guessing for NVDA it would just be divided by 10 or what happens

[@mattjcrane]

Than your partial share will multiply by ten so you’ll still participate in the stock split. So if you had .25 shares it would turn into 2 and half shares

[@anamariafisca2761]

Thank you!

[@exzisd]

Nvidia rocket isn’t stopping anytime soon. Even at over +200% in 2024 as I write this I think we can easily still 3x this year. We are still at the beginning of the AI explosion.

[@user-rk1nj4dh7t]

I sold every other stock and reinvested everything in team green. And I am really glad that I did it.

[@exzisd]

I sold every non BTC crypto I held and put it all on Nvidia. I don’t usually care for stocks but Nvidia is way too good of a proposition and I think they are still very undervalued. With this stock split it will just be more fuel to keep the stock soaring into 2025. My main concerns are developments in other AI companies, regulations around AI, and how the 2024 election and the following years may impact AI tech itself - not specifically Nvidia but moreso AI at large.

[@GankTown]

Thought this was kevin Samuels

[@dennisboyd1712]

BUY NVIDIA STOCK Now

[@bluemoon6559]

Unlike what many analysts say that there is no impact of a stock split, the 10 for 1 stock split by NVDA has very enormous significance. Such a large split signals that the company has huge confidence in robust forward earnings and revenue. That business will continue to be strong going forward for a very long time. If NVDA's confidence in the revenues were not so strong, they would have announced a smaller stock split like 2:1 or 5:1. That's because if the stock price drops close to $1 per share at any time in the future, they may be delisted. As a result, they would have to do a reverse stock split to bump back up the stock price and avoid delisting. That would be very embarrassing and ugly. So NVDA has to carefully balance the amount of the stock split vs forward business revenue and the growth of the stock price. Thus a huge 10:1 split indicates that NVDA has very strong convictions that their earnings will be tremendous in the years to come. This supports the case that NVDA is a long term investment just like Microsoft and Intel in the 90s for their dominance in the PC market. 99% of PCs that were bought had only those 2 company's products built into the PCs to avoid compatibility issues with the many apps. Today, NVDA is the new Microsoft and Intel combined, but for AI everything. It's obvious that NVDA should be in everyone's portfolio, even if it's a small position. After the stock split, it would be even easier.

[@mlee1308]

Nice jacket.

[@EricRosete]

He trying to be like Jensen.

[@CalvinWongg]

One of the biggest stock bubble in the history of stock markets!

[@derekwillstard3613]

So my 10390 NVDA shares will become 103900? I’m rich then 🤣🤣🤣

[@xcreighton]

still the same, better for new investors

[@player8967]

Especially if the feds start cutting interest rates, more retail investors will get in and cause the price per share to pop

[@user-rk1nj4dh7t]

Yes but every share will be worth 100$ not 1000$.

[@JimMcNutty]

That’s absurd. If you owned that many shares a) you would know you are already rich b) would already understand stock splits

[@davidr8553]

if you have 10390 nvda shares then you’re already rich but I doubt because you didn’t realize it has the same value