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Here's When NVIDIA Will Likely Announce a Stock Split
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Earlier this week I published an article on the three reasons NVIDIA should issue a stock split soon. With shares near $1,000, history says NVIDIA (NASDAQ: NVDA) will split their shares, but one question on NVIDIA investor’s minds is just when this stock split will happen.
Let’s dive into what the timing of an NVIDIA stock split could look like.
If you’re looking for the reasons NVIDIA should issue a stock split, I’ll quickly summarize them:
Again, you can read more details in my prior article, but the key idea here is that NVIDIA set a precedent in 2021. At the time they announced a 4:1 share split at around $600 per share and explained they were doing so to make ownership in their stock accessible to all.
With the company closing the week trading at $878.36, it’s now trading at 46% above when NVIDA last announced a stock split. So, just when will they announce a split?
One question that might be on your mind is why hasn’t NVIDIA announced a stock split yet. After all, they’re trading at a price 46% higher than when they announced their last stock split!
The simple answer is that stock splits generally require board of director approval. In 2021, NVIDIA announced their stock split on May 21st, which coincided with a board vote to split the stock 4:1.
However, the board’s decision to split NVIDIA’s stock wasn’t final. After the board announced the stock split, NVIDIA’s shareholders still had to approve the stock split. This vote happened in front of the company’s Annual Meeting of Stockholders, which took place on June 3rd, 2021.
So, if you’re looking for dates when NVIDIA could announce their next stock split, here are a few to circle.
Academically speaking, share splits don’t change the value of a company. However, a trend like artificial intelligence is something that mainstream investors have latched onto. It wouldn’t be surprising if an NVIDIA share split drove more attention to the company and attracted more investors.
In short, the possibility of NVIDIA splitting its shares may not matter, but it won’t be a negative to demand for the company’s shares and could very likely be a big positive.
With all this being said, while NVIDIA has demonstrated in the past it wants to give more access to its shares and will likely issue a stock split, there are no guarantees. Between NVIDIA and Super Micro Computer (Nasdaq: SMCI), it’s likely one of the market’s current AI darlings will issue a stock split. The race is on to see which one will act first.
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