Do you want to participate in the Nvidia Stock Split? You need to own NVDA stock today.

Nvidia Stock Split – Want to Participate in the Nvidia Stock Split?  You need to own NVDA stock today.

Source: Under Heaven /

If you want to participate in the tech giant’s upcoming stock split Nvidia (NASDAQ:NVDA), you have to act quickly. Those who own NVDA shares at the end of today’s session will receive an additional nine shares of the security after the end of tomorrow’s session, per USA today. Simply put, Nvidia’s stock split represents the blistering performance of the underlying company.

At the end of May, Nvidia presented a blockbuster earnings report for the first quarter of fiscal year 2025. Earnings per share amounted to $6.12 on revenue of $26.04 billion. Wall Street analysts, on the other hand, had expected earnings per share of $5.60 on revenue of $24.59 billion. For the current year, experts predict consensus earnings of $27.03 per share on revenue of $120.41 billion.

Along with the stunning Q1 report, management announced a 10-for-1 split of NVDA stock, along with a dividend increase. Investors who own shares at the end of Tuesday’s session next week will receive a payout of 1 cent per share. Dividend will be paid on June 28.

Huge performance makes the case for Nvidia’s stock split

According to The Wall Street JournalNvidia has surpassed the $3 trillion market cap mark. In fact, this milestone makes NVDA “more valuable than many national stock markets, at least as measured by broad stock indexes.” As of now, the market value is closing the gap with the FTSE All-Share Index. NVDA has already surpassed stock benchmarks in Toronto and Seoul, which explains the main reason behind Nvidia’s stock split.

Buying NVDA stock can be difficult for investors who don’t have access to brokers that offer fractional share ownership. Before the split, the security is trading around $1,200, which may not be accessible to many retail investors. In essence, NVDA’s success has become its own challenge. However, a 10-for-1 split reduces the supply per unit, allowing for greater access.

Fundamentally, Nvidia’s stock split has no impact on the company’s valuation: it just makes the stock “cheaper” and therefore more accessible. However, due to the high demand for NVDA, it is possible that a broader scope could lead to even greater benefit.

With a market cap of $3 trillion, Nvidia briefly joined in Microsoft (NASDAQ:MSFT) as the only company to reach such great heights.

On date of publication, Josh Enomoto had no positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication Guidelines.

Josh Enomoto, a former senior business analyst at Sony Electronics, has helped broker major contracts with Fortune Global 500 companies. In recent years, he has provided unique, critical insights for the investment markets, as well as for several other industries, including legal, construction management and healthcare. Tweet him at @EnomotoMedia.