Investing

Will NVIDIA Split Its Stock Again in 2025?

Omor Ibne Ehsan

Published: January 26, 2025 11:57 am

Nvidia (NASDAQ: NVDA) decided to split its stock in June 2024. It went for a 10-for-1 split, and the market was very positive about the announcement. NVDA surged 7% the day after at the opening bell. Since then, the stock has been up over 20.6%. That may not seem like much, but you should keep in mind that Nvidia’s market capitalization is now at $3.55 trillion.

In addition, Nvidia’s shares have been relatively muted in the past six months. The market seems to be waiting for Nvidia’s next earnings report on February 26th to decide whether it is worth paying more for.

24/7 Wall St. Key Points:

• Nvidia has proven its naysayers wrong. It has continued to grow with more and more momentum.
• However, the stock price has been more muted, allowing the company’s fundamentals to catch up.
• But if the stock does its best this year, could NVDA go through another stock split? Let’s find out. Do grab our free “The Next NVIDIA” report. It includes a software stock with 10X potential.

In the meantime, Stargate has been announced, so it is likely that Nvidia will keep some of its upward momentum until earnings. If management is really looking to bump up the share price, it may even do another stock split. Let’s first look into what caused Nvidia to do a stock split last year and then determine if it could do the same this year.

Why Did Nvidia Do a Stock Split in 2024?

NVDA stock became prohibitively expensive for retail investors last year as it climbed over $949 before the announcement and surged past $1,150 afterward. The split was mostly due to the company delivering exceptional performance as its market cap neared $3 trillion back then, and revenue had increased 262% to $26 billion in Q1 fiscal 2025. Data center revenue also surged 427% to $22.56 billion.

The biggest concern for shareholders back then was the constant fear about whether or not it was an AI bubble they were piling into. No one knew for sure if the earnings would stick around, and the big price tag of Nvidia added to the anxiety.

Doing a stock split and raising dividends by 150% was a good move by management to make shareholders more confident. It is also partly why the company went on to briefly surpass Apple (NASDAQ: AAPL) as the biggest company. Trading volumes naturally surged as well.

Nvidia’s Current Position in 2025

Nvidia’s financials have remained solid, but the atmosphere shareholders are in is definitely different. The stock’s momentum has cooled down significantly, and its financials have caught up to the point where most other AI stocks now look more expensive than what you’re paying for NVDA. You are paying 33 times forward earnings, which is much cheaper than what you are paying for its competitors, many of whom are not even solidly profitable.

If you then consider Blackwell and the fact that AI and data center demand has continued to be red hot, I see little room for shareholders to be anxious. Most other AI companies are likely to go down first before Nvidia does. Its competitors have failed to grab market share and have been underperforming it to the point where Nvidia could basically buy most of them.

Moreover, the stock price hasn’t moved much since its last stock split. The current stock price seems perfect for where Nvidia is at. It is much more accessible than other mega-cap stocks.

Will Nvidia Do a Stock Split in 2025?

I see little leeway for Nvidia to justify a stock split this year. If anything, this would spook investors and have the opposite effect it did last year. Analysts will likely think that Nvidia’s fundamentals have run out of steam, and management is looking into other ways to bump up their share price. Even a 2-for-1 stock split would be quite unwarranted right now.

Unless the stock goes through another dramatic surge and potentially reaches $500+ this year (which is borderline impossible due to its market cap), another split seems just as improbable. The highest price target for Nvidia is at $220 this year.

If Nvidia maintains its momentum and continues to perform well for the next two to three years, you will probably see another stock split. However, two stock splits in two years for a company that is this big won’t happen.

The Bottom Line

Nvidia is highly unlikely to announce a stock split in 2025. The 2024 stock split was appropriate and a success, but a stock split at its current price would have the opposite effect.

Management will likely keep their focus on maintaining the company’s financials and making sure that they can meet the accelerating demand for chips from AI companies.