
Nvidia's stock split history is a fascinating story that spans over two and a half decades. The company's first stock split occurred in 1999, when it issued a 2-for-1 split.
Nvidia's stock price at the time of the first split was around $3.50 per share. This split marked a significant milestone in the company's growth trajectory.
Since then, Nvidia has undergone a total of 6 stock splits, with the most recent one being a 4-for-1 split in 2020. This split occurred when Nvidia's stock price had reached an all-time high.
The stock splits have helped to make Nvidia's stock more accessible to individual investors, allowing them to buy a larger number of shares with the same amount of money.
NVIDIA Stock History
NVIDIA was first listed on the NASDAQ stock exchange in January 1999, initially trading under the ticker symbol NVDA.
The company's stock price was around $0.50 per share at the time of its initial public offering (IPO).
NVIDIA's stock price has increased significantly over the years, with a major milestone being its first stock split in 2000, which increased the number of outstanding shares.
This stock split helped to make NVIDIA's stock more accessible to individual investors, contributing to its growing popularity.
NVIDIA's stock price continued to rise in the following years, with the company experiencing significant growth in the fields of graphics processing units (GPUs) and artificial intelligence (AI).
26 Year Stock History
NVIDIA has a 26-year stock split history, which is a testament to the company's growth and success over the years.
The company's market capitalization has grown significantly, reaching $3367.130 billion as of the latest data available.
NVIDIA's revenue has also increased, reaching $60.922 billion.
Here's a brief overview of NVIDIA's stock split history:
NVIDIA's focus has evolved over the years, from PC graphics to artificial intelligence (AI) based solutions that support high performance computing (HPC), gaming, and virtual reality (VR) platforms.
The company's GPU success can be attributed to its parallel processing capabilities supported by thousands of computing cores, which are necessary to run deep learning algorithms.
History Foresees Sharp Stock Decline
Nvidia's past stock splits suggest a sharp decline in the stock price following the event. This is evident from the company's history, where shares have declined by an average of 23% during the 12-month period following past stock splits.
Most of Nvidia's past stock splits took place within 12 months of a recession, with four out of five splits occurring during economic downturns. This is a crucial factor to consider, as few stocks generate positive returns during economic downturns.
A chart from the past shows that Nvidia's stock price declined by an average of 23% during the 12-month period following past stock splits. This is a significant decline, and investors should be cautious when considering investing in the company.
Here's a breakdown of Nvidia's past stock splits and their subsequent performance:
As you can see, the average 12-month return following a stock split is a decline of 23%, while the average 24-month return is a decline of 3%. These numbers suggest that investors should be cautious when considering investing in Nvidia following a stock split.
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Stock Split Performance
Historically, Nvidia shares have performed poorly following stock splits, with an average 12-month return of -23% and a 24-month return of -3%.
Nvidia's past stock splits have been particularly bad news for shareholders, with some events resulting in declines of up to 72% in the 12-month period following the split.
Here are the details of Nvidia's past stock splits:
Keep in mind that past performance is never a guarantee of future results, but it's essential to consider the historical data before making investment decisions.
Stock-Split Stocks Outperformed S&P 500 Historically
Stock-split stocks have outperformed the S&P 500 historically, with companies' shares appreciating by 18% on average during the 12-month period after their stock split announcements since 2010, according to Bank of America.
The S&P 500, on the other hand, returned an average of 13% annually during the same period. This suggests that stock-split stocks have a slight edge over the broader market.
Bank of America's data indicates that stock-split stocks tend to outperform the S&P 500 at least temporarily, which is a promising sign for investors.
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Stock Splits: Poor Post-Split Performance
Stock splits can be a great way to make stocks more accessible to investors, but they don't always lead to positive returns. Historically, Nvidia shares have performed poorly following stock splits, with an average decline of 23% during the 12-month period after the split.
The table below shows the return on Nvidia shares during the 12-month period following each of its five stock splits since going public in 1999.
It's worth noting that most of Nvidia's past stock splits took place within 12 months of a recession, which can make it difficult for the stock to perform well.
Nvidia Stock Splits
Nvidia Stock Splits have played a significant role in making the company's shares more accessible to investors.
The company has undergone six stock splits, with the first one occurring on June 27, 2000, when one share became equivalent to two shares.
Nvidia's strategy behind these splits was to enhance market liquidity and make its shares more attractive to investors.
Curious to learn more? Check out: What Nvidia Stock Split Means for Investors
These splits have had a significant impact, with one share purchased before June 27, 2000, now equivalent to 480 shares.
Here's a breakdown of Nvidia's stock splits:
Nvidia's partnership with major cloud service providers and server vendors has been a key catalyst for the company's success.
The company's focus has evolved over the years from PC graphics to artificial intelligence (AI) based solutions that now support high-performance computing (HPC), gaming, and virtual reality (VR) platforms.
Frequently Asked Questions
How high will Nvidia stock go after split?
NVIDIA stock has shown significant growth after previous splits, increasing by over 30% in a short period. However, predicting future stock performance is uncertain and subject to various market factors.
Sources
- https://www.macrotrends.net/stocks/charts/NVDA/nvidia/stock-splits
- https://www.fool.com/investing/2024/08/24/nvidia-stock-soared-30-since-stock-split-this-next/
- https://www.fool.com/investing/2024/06/06/nvidia-stock-split-tomorrow-ai-stock-do-this-next/
- https://www.forbes.com/sites/dereksaul/2024/06/10/nvidia-shares-now-trading-at-just-120-after-stock-split-in-wake-of-monstrous-run/
- https://www.moomoo.com/ca/learn/detail-nvidia-stock-split-117244-240671236
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