Investors who own Nvidia stock at the close of trading Thursday afternoon are set to be affected by the chipmaker's upcoming stock split.
A 10-for-1 split was announced as earnings increased in late May. These announcements accompanied strong first-quarter earnings from the chip manufacturer and artificial intelligence developer.
The split will occur one day after the tech giant passes Apple to become… The second most valuable company In the world.
Nvidia's value surpassed $3 trillion on Wednesday, putting the company behind only Microsoft, which is valued at $3.14 trillion.
Here's what you need to know about Nvidia's stock split:
How does the Nvidia stock split work?
Investors who owned Nvidia stock at the end of the trading day Thursday are scheduled to receive an additional nine shares of the stock after the end of the trading day Friday. The value of the shares will be adjusted to reflect the split.
Trading on the split value price will begin on Monday.
Nvidia profits
Shareholders at the end of the day Tuesday will receive a 1 cent per share dividend that the company will pay on June 28.
Nvidia is valued at $3 trillion after split news, earnings, and Tesla order
Nvidia crossed the $3 trillion threshold the day after Tesla CEO Elon Musk said on X, formerly known as Twitter and owned by Musk, that the electric car maker would likely… Spending between $3-4 billion on Nvidia hardware this year, making up roughly 30-40% of the company's AI spending this year, according to Musk.
The disclosure of Tesla's order comes after Nvidia reported strong profits in the first quarter of the year.
The company reported the expiration 260% increase in revenue Compared to the first quarter of 2023, while data center revenue jumped 427% from a year ago to $22.6 billion, an increase fueled in part by demand for generative AI training, the company said.
“The next industrial revolution has begun,” said Jensen Huang, founder and CEO of Nvidia. he exclaimed in a May news release Announcement of first quarter results. “Companies and countries are collaborating with Nvidia to transform traditional trillion-dollar data centers into accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”
Nvidia stock price
Nvidia stock closed trading at $1,224.40 per share on Wednesday.
If the stock had split on Wednesday, it would have been worth $122.44 per share. The index rose just under 29% between the stock split announcement in May and the close of trading on Thursday.
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