Nvidia After Stock Split

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Nvidia After Stock Split

How Nvidia Is Doing After Stock Split

The year 2024 was all about stock splits as a lot of big companies went through it. However, the most prominent one was Nvidia, the famous chip-making firm. In fact, Nvidia is the #1 chip designer, and its chips are the most demanding products in the AI sector.

The reason why Nvidia went through a stock split was to lower the stock price and make it more affordable. The firm wanted its stock to be accessible for everyone. After all, it was only justified as the company's stocks have surged to new highs over the years.

Nvidia Remains Bullish

Unlike the common perception, the stock split of Nvidia didn't change its market value at all. It was just that the people got more shares after a stock split.

For example, a 10-1 stock split means anyone holding one share will get 10 shares in total. Through this process, the price of the shares is also lowered to make them more affordable.

Nvidia finalized its 10-1 stock split last year, which lowered the stock price from $1200 to just $120. Since then, Nvidia has gone through a lot of ups and downs, but is still standing at 40% gains.

During this time period, Nvidia launched new chips, products, and much more. So, it was not the stock split which increased the stock price, but actual products and services.

The best product from Nvidia was its Blackwell architecture, which earned them a revenue of $11 billion during Q1. On top of that, Nvidia has managed to keep its gross margins above 70% which allows it to remain highly profitable.

So unlike other tech companies, which continue to make losses, Nvidia is in a league of its own. On top of that, the price increase during that period can also be justified by the launch of new products/services.

Looking ahead, Nvidia faces challenges in the form of lower AI spending and newer import tariffs. Also, many companies are expected to reevaluate their AI spending now that the dust is finally settling down.

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