NVIDIA's Strong Performance and Stock Split

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

NVIDIA's US stock closed at $1140.59 per share yesterday, an increase of 7.13%, and the post-market trend is still rising. Currently, its 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 7th (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 a stock split does not affect the company's market capitalization, historically, especially a forward split, is usually regarded as a bullish signal by the market. Most importantly, NVIDIA is also the most favored stock on Wall Street currently.

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