The NVDA stock split 2024 has investors eager to learn how it will affect their portfolios and the company’s future. The decisions made by NVIDIA, one of the most innovative and influential tech companies, had a significant impact on the stock market. But for investors, what does this stock split mean? And what can you expect if there’s another NVDA stock split in 2025? This is the place to be if you want to know how these splits will affect your portfolio. The reasons behind the NVDA stock split in 2024, as well as the potential effects on stock value and other factors, will be discussed in detail in this blog post. To help investors prepare for the future, we will also highlight market trends and analyst predictions for 2025. By the end, you will know how the splits impact your investing strategy, so you will be prepared for what is ahead in the coming years.
Table of Contents
What Is a Stock Split?
Why do Stock Splits Matter For Investors?
When did NVDA split its stock? History of NVDA Stock Splits Split of NVDA Stock in the Past: Will NVDA Stock Split in 2025?
What is the Process of a 10-for-1 Stock Split? How are NVDA Stock Splits Calculated? After the reverse split, should I buy NVDA stock? Historical Performance of NVIDIA Post-Split
Performance of Stocks After a Split Analyst Ratings and Price Targets
Financial Performance
Ideas for Potential Investors Conclusion
FAQs
How Does a Stock Split Work? In stock splits, current shareholders receive additional shares. As a result, it leads to issuing more shares at a reduced price. However, neither the amount held by shareholders nor the market value of the business are affected. A 2-for-1 stock split, for instance, would result in an increase in the number of shares while lowering the price per share for the owner of one share. How are stock splits important to investors? Stock splits may be implemented by businesses for the following reasons: Enhanced Liquidity: The share price is reduced, thus reducing the barrier for more potential investors to access equities and, therefore, increasing trading with better liquidity.
Marketability: A lower share price might make the stock more accessible and appealing to small investors. Positive Market Perception: When the management announces stock splits, it shows the company’s bright future and simultaneously raises the investors’ hopes about its growth potential.
Portfolio Balancing: A split allows low-capital owners to buy additional units to increase the proportion of a successful firm.
Potential for Future Growth: Split stock companies are known to have good growth potential. Recent statistics indicate that stocks perform well following a split, despite the fact that there is no guarantee. When did NVDA Stock Split?
On June 7, 2024, NVDA shares split 10-for-1. Thus, the investor gets ten new shares for each share they previously owned. As a result of this split, more investors could purchase the stocks for ten times less money. An investor’s total holding value will remain unchanged even when more shares are owned. It increased liquidity, drew in individual investors, and demonstrated the company’s confidence in its future success and ongoing expansion. On June 10, 2024, the shares started trading at the revised price following the split.
NVDA Stock Split History
Nvidia Corporation (NVDA) has a history of splits in NVDA stock. The latest occurred on June 7, 2024. On that date, Nvidia conducted a 10-for-1 stock split. For every share the shareholders possessed before the split, they received ten new ones. The stock price fell ten times as much as a result, making it more accessible to a greater number of investors. Since NVIDIA went public in 1999, the company has split its stock six times. Here is a summary:
Split of NVDA Stock in the Past: Date Split Ratio
June 27, 2000 2-for-1 split
September 17, 2001 2-for-1 split
April 7, 2006 2-for-1 split
Split of three for two on September 11, 2007 July 20, 2021 4-for-1 split
June 7, 2024 10-for-1 split
It’s important to note that Stock splits increase the availability of shares. However, they do not affect the value owned by the investor. The value stays the same. The only things that change are the number of shares and how much money is in each share. In 2025, will NVDA stock split? After the recent 10-for-1 stock split announced on June 7, 2024, NVDA doesn’t plan a subsequent one. Analysts say they would have a split stock in 2025, but no news is confirmed. The stock split might occur only when the Stock rises sharply. In order to make the stock price more manageable for investors, the company might do this in 2025. Moreover, the stock split decision also depends on the company’s performance, market conditions, and strategy.
How Does a 10-for-1 Stock Split Work?
In a 10-for-1 stock split, each shareholder receives ten new shares from the company in return for each share they own. The operation is as follows: Growth in Shares: Every time an investor owns a share, the corporation issues 10 additional shares into the market; hence, this rise will boost the share Amount.
Price Adjustment: When a stock is split, its price decreases by ten if it had been worth $10. If it had been $100 before the split, the same stock would have cost $10. No Change in Total Value: The collective value remains the same. Increasing the number of shares does not affect the portfolio’s overall value. For example, after a stock split at $100, an investor buying 10 shares at $100 would now own 100 shares; however, every share would be worth only $10 post-split.
How are NVDA Stock Splits Calculated? The price per share and the number of shares would need to be changed by the split ratio multiplier in order to adjust NVIDIA (NVDA)’s stock split. As follows:
Identify the Split Ratio: Let’s take the 10-for-1 split as an example. This split means that you divide each old share into ten.
Balance the Number of Shares: If you had a few shares, and it happened to split at 10-for-1, then you’d multiply that by the number in which it was divided. Let’s say you had 100 shares before a 10-for-1 split. Because 100 times 10 =, you now have 1,000.
Share Price Change: Divide the previous share price by the ratio for a 10-for-1 split. Shares, for instance, now cost $120 as opposed to $1,200 in the past. It makes sure that even though the number of shares is increased, both the quantity and the amount per share remain the same while the investment’s actual value remains unchanged. For instance, 1,000 shares at $120 and 100 shares at $1,200 are the same as $120,000. Is NVDA Stock a Buy After Reverse Split?
On June 7, 2024, Nvidia Corporation recently conducted a 10-for-1 stock split. This NVDA stock split diminished the share price from nearly $1,200 per share to about $120 in share price.
Historical Performance of NVIDIA Post-Split
After stock splits, NVIDIA’s stock has historically produced mixed results: 2000 Split: Six months after the June 2000 split, the stock fell by 50%. A year later, it went up by 28 percent. The following two years saw a 52 percent decrease. 2001 Split: The Stock increased 44% in the first half-year following the split in September 2001. But it dropped 72% after two years, meaning it lost 49% in just two years.
2006 Split: The Stock went up 63% in six months after the split in April 2006. However, it only increased by 1% in a single year and decreased by 6% two years later. 2007 Split: Six months after the split in September 2007, the Stock dropped 45%. It dropped 70% in one year and fell 53% over two years.
2021 Split: Six months after the split in July 2021, the Stock went up by 30%. The decline was 4% in one year, but the gain over two years was 145%.
Six months after a split, NVIDIA’s share increases by 8% on average. However, it decreased by 3% over the course of two years and 23% in the first year. Performance of Stocks After a Split After the split, NVIDIA’s stocks have grown exponentially. On December 30, 2024, the stock stood at $137.49, a 13.7% rise from its post-split value Nancy Pelosi Stock Tracker data highlights similar momentum in politically adjacent tech equities, aligning with historical patterns where split stocks average an 18% return within 12 months of announcement. This correlation underscores how market movements increasingly intersect with legislative insights, offering investors dual lenses to gauge volatility and growth potential.
Price Targets and Ratings from Analysts The outlook for NVDA among analysts is still positive. Based on 43 analyst ratings, the consensus rating is “Moderate Buy,” with 40 recommending a buy and 3 recommending a hold. The average price target for the next twelve months is $177.08, implying a potential gain of approximately 29% from the current level. Financial Performance
In the first quarter of fiscal 2025, Nvidia announced a substantial quarterly revenue of $26.0 billion, 18% higher than the previous quarter and an incredible 262% rise year over year. Revenues were estimated at $22.6 billion for its Data Center division, which is 23% higher than the prior quarter and a remarkable 427% rise year over year.
Considerations for Future Investors
Although stock splits increase investor liquidity and make shares more marketable, they do not raise the value of the business. Keep the following considerations in mind when purchasing NVDA Stock Split: Fundamentals of the Company: At this point, investors should focus on NVIDIA’s market position, growth expectations, and financial stability rather than the share price at face value. Market Fluctuations: The post-split share price can fluctuate with market conditions. The split does not alter the company’s market capitalization or the investment’s intrinsic value. As a result, short-term price fluctuations should be anticipated by investors. Dividend Adjustments: In the case of dividends, the dividend per share will also change due to alteration in the split ratio. For instance, NVIDIA’s quarterly cash dividends were recently increased from $0.04 to $0.10 (pre-split), or $0.01 per share after the split.
NVDA Stock Split: What Investors Need to Know? (Jan 2025)
