A Stratospheric Rally
Nvidia Corp. NVDA has ridden the AI revolution wave to dizzying heights, catapulting its shares to a princely sum. This meteoric rise has placed the stock out of reach for many retail investors.
A Question of Split
During a special episode of “Mad Money” aired from GTC 2024, CNBC host Jim Cramer confronted CEO Jensen Huang with the million-dollar question on every investor’s mind: Will Nvidia consider a stock split?
The CEO’s Response
In response to Cramer’s probing, Huang hinted at the possibility of a stock split, tantalizing investors with the prospect. “We’ll think about it. Today’s not the day to announce,” he stated, keeping the market on edge.
Historical Context
Nvidia holds a history of stock splits, having divided its shares five times over the past 25 years. These splits include a 2:1 split in 2000, two 2:1 splits in 2001 and 2006, a 3:2 split in 2007, and a hefty 4:1 split in 2021.
An Analyst’s Predictions
Ken Mahoney, President, and CEO of Mahoney Asset Management, anticipates another stock split within the coming year. Mahoney believes a split could open the gates for smaller retail investors eyeing Nvidia’s currently lofty price tag.
The Market Pulse
As of the latest figures, Nvidia stands as the world’s third most valuable company with a substantial market capitalization of $2.235 trillion. The stock concluded Tuesday’s trading session at $893.98, experiencing a slight dip to $891.64 in after-hours trading, according to data from Benzinga Pro. Year-to-date, the stock has soared over 80%.
The Buzz on Wall Street
Despite its high value, Nvidia remains a hot topic on WallStreetBets, currently ranking as the second most-discussed stock on the notorious forum known for its volatile meme-stock trends.
Looking Ahead
With speculation rife and optimism high, investors eagerly await Nvidia’s next move. Will Jensen Huang and the Nvidia team decide to split the stock, creating new opportunities for a broader range of investors? Only time will tell.