Investing

Prediction: NVIDIA Will Be the Next AI Stock to Split Under a Trump Presidency

Joey Frenette

Published: November 7, 2024 8:40 am

Nvidia (NASDAQ:NVDA) stock never seems to go too long without experiencing a sustained rally higher. Undoubtedly, only time will tell if NVDA shares will retain the multi-bagger gains that investors have enjoyed in 2024.

The skeptics will dismiss Nvidia shares as one of the biggest AI stock bubbles out there, while others believe that the best has yet to come from its genius CEO, Jensen Huang. It’s hard to tell what the future holds for Nvidia. In any case, it looks like Nvidia is the frontrunner in the big tech race to be the first firm to hold the enviable title of being the first to break the $4 trillion market cap milestone.

Indeed, Nvidia’s rise to get here has been unlike anything investors have ever seen. And while there will be volatility (think 30-50% crashes) to be expected as Nvidia builds its lead on its Magnificent Seven peers, there will likely be more money to be made by those willing to embrace the name on the way.

With the recent inclusion in the historic Dow Jones Industrial Average (DJIA), I think Nvidia is here to stay. The $4 trillion question remains how quickly Nvidia stock will run relative to other mega-cap titans in tech.

Key Points About This Article

• Nvidia stock could be the next mega-cap AI stock to get split again, at least in my opinion.
• NVDA’s latest Trump-fuelled breakout seems quite sudden. But waiting for the next split makes no sense.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Could Nvidia’s post-election surge make shares less accessible to small investors again?

With Donald Trump winning the presidential election this week, Nvidia stock may have the legs to rise to a level such that another stock split would be in order. Undoubtedly, if the pace of this blistering rally continues through 2025, the swelling share price may make the name harder to access for smaller retail investors once again.

And while the inclusion into the Dow does not mean NVDA stock will continue its hot run, I do think that many value-conscious folks are discovering that Nvidia has what it takes to walk the walk after talking a big talk.

Undoubtedly, quarterly earnings have continued to impress, and as corporate America (and other parts of the world) become more invested in the AI trend, Nvidia may very well be one of the stocks that one gives in and just buys.

At the time of writing, no stock split is needed for Nvidia. It’s going for around $145 and change per share. However, if the Trump rally takes NVDA shares into overdrive, perhaps we may not be all too far off from another big split.

As NVDA stock breaks out, could another split be on tap?

If Trump’s policies fuel another leg of optimism or euphoria, however, count me as unsurprised if chatter of another NVDA stock split is thrown into the conversation by this time next year. Of course, triple-digit gains in a year are not sustainable.

That said, should NVDA stock have another big year in the tank before its much-anticipated pullback, maybe a split could be in order. As always, stock splits don’t mean you’re getting less for more.

So, if you’re a beginning retail investor, don’t wait on another split if you’re keen on the name, as it won’t mean you’ll get more with your sum of cash. You won’t get a larger piece of the pie, no matter how many times you slice it. The same goes for stock splits.

That’s not to say that stock splits aren’t a good thing, especially for the small retail investor who’s just getting started out. A lower stock price simply means someone with a limited sum can afford to get a slice of the pie. It’ll be a much thinner slice after a split, but they can get a piece regardless.

In short, nobody knows when NVDA stock will split again. If the momentum continues, maybe the name will be overdue for a split. However, if a correction is in the cards come 2025, there may be no need for a split anytime soon. In any case, as the AI boom continues, count me as least surprised if NVDA is the next in line for yet another split.