Nvidia is rolling out a 10-for-1 stock split, cashing in on the AI boom it has been driving and giving investors a hefty nugget.
The stock has advanced over 91% this year, closing at $949.50 per share on Thursday in the extended session shares rose past the $1,000 mark.
Post split, which is effective on June 7, 2024, one Nvidia share would be worth $94.95. Nvidia shares have risen over 231,485% since its IPO in January 1999.
The announcement came as first quarter revenue of $26 billion, up 262% from the same period a year ago, beat estimates of $24.6 billion, as tracked by LSEG. The company also delivered a higher-than-expected second quarter revenue forecast of $28 billion compared to a $26 billion estimate.
Nvidia is considered the poster child for AI leading other rivals including Meta and Google under the direction of CEO Jensen-Huang who is also the company's largest individual shareholder, owning nearly 4% of company shares, as tracked by Thomson Reuters.
"The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence," said Huang in the earnings announcement.
Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California. The developer conference is expected to highlight new chip, software, and AI processo (Justin Sullivan/Getty Images / Getty Images)
Stock splits are in vogue this year as companies with high-priced shares roll out these divides, rewarding current investors and enticing new ones.
Chipotle's board of directors approved a 50-for-1 split of its common, shareholders of record as of June 18 will receive the additional shares after the market closes on June 25.
The burrito maker followed a similar move by Walmart earlier this year. The nation's largest retailer split its shares 3-for-1 in February so more employees could be shareholders. CEO Doug McMillon said it follows the mission of the retailer's founder.