NVIDIA's Strong Performance and Stock Split

TapTechNews May 29 news, last week, the artificial intelligence industry leader NVIDIA once again handed in an extremely strong financial report, and its stock price also broke through the $1000 mark.

NVIDIA's US stocks closed at $1140.59 per share yesterday, an increase of 7.13%, and the post-market trend is still increasing. The current market capitalization has reached $2.81 trillion (TapTechNews note: currently about 20.37 trillion RMB), only about $100 billion away from Apple's $2.91 trillion.

It is worth noting that when announcing the financial report last week, NVIDIA also simultaneously announced a '1-for-10' stock split plan, which will take effect after the market closes on June 7 (Friday). This will make NVIDIA the 8th US-listed company to announce a forward split plan this year after Walmart and Chipotle.

The analysis report released by Bank of America also shows that although the stock split will not affect the company's market capitalization, in history, especially the forward split, it is usually regarded as a bullish signal by the market. Most importantly, NVIDIA is also the most favored stock on Wall Street at present.

According to the statistics of Bank of America, the S&P 500 index constituent companies that announced the stock split plan since 1980 performed significantly better than the index within 3, 6, and 12 months after the initial announcement of the split plan. The stock prices of relevant companies increased by an average of 25.4% in 12 months, while the S&P 500 index increased by an average of 11.9% during the same period.

For example, when NVIDIA split 1-for-4 in 2021, the stock price was around $600, and before the split took effect, the highest stock price had already risen to $835, and after the split, the stock price increased by more than 450%.