Nvidia Stock Split? Experts See The Soaring Stock Prompting Another Split, Making It More Accessible
Nvidia Corp’s (NASDAQ:NVDA) remarkable surge has escalated its market value by over $1 trillion this year, propelling the AI leader to consider another stock split.
Following a four-for-one split in May 2021, when shares were around $600, Nvidia’s price is now approaching $1,000, building on last year’s 240% gain.
Experts believe a split could make shares more accessible, especially to small retail investors deterred by the high share price, Bloomberg reports.
Ken Mahoney of Mahoney Asset Management anticipates a potential split within the next year to attract these investors.
Without indicating immediate plans for a split, Nvidia has seen its shares skyrocket past previous levels after a significant drop in 2022.
While fundamentally cosmetic, stock splits tend to attract retail investors by offering shares at a psychologically more appealing price point, even though the company’s overall valuation remains unchanged.
Despite no confirmation from Nvidia on an impending split, its ongoing rally and popularity among retail traders highlight its robust market presence.
Analysts hail Nvidia as the most significant AI beneficiary courtesy of Nvidia’s AI ramp through 2024 and 2025 with GH200, B100, and B200, with 2024 at ~$89 billion in Data Center revenues with potentially more upside and potentially reaching ~$280 billion in AI Data Center revenue by 2027.
The stock maintains the broadest ownership among fund managers, as per analysts.
Analysts can gain exposure to the stock via Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and Tidal ETF Trust II The Meet Kevin Pricing Power ETF (NYSE:PP).
Price Actions: NVDA shares traded lower by 1.43% at $910.68 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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