Investors who own Nvidia stock when trading closes Thursday afternoon are set to be impacted by the chipmaker’s upcoming stock split.
The 10-for-one split was announced along with a dividend increase in late May. The announcements accompanied strong first quarter earnings from the chip manufacturer and artificial intelligence developer.
The split will occur a day after the tech giant passed Apple to become the second most valuable company in the world.
Nvidia’s valuation passed $3 trillion on Wednesday, putting the company only behind Microsoft, which is valued at $3.14 trillion.
Here’s what you need to know about the Nvidia stock split:
How the Nvidia stock split works
Investors who hold Nvidia stock at the end of the trading day Thursday are set to receive nine additional shares of the stock after the end of trading day Friday. The value of the shares will be adjusted to reflect the split.
Trading on the split value price will begin on Monday.
Nvidia dividend
Shareholders at the end of the day Tuesday will receive a one cent per share dividend that the company will pay out on June 28.
Nvidia hits $3 trillion after news of split, dividend and Tesla order
Nvidia crossed the $3 trillion threshold the day after Tesla CEO Elon Musk said on X, formerly known as Twitter and owned by Musk, that the electric car maker is likely spending between $3-4 billion on Nvidia hardware this year, making up roughly 30-40% of the company’s artificial intelligence spending this year, according to Musk.
The revelation of Tesla’s order comes after Nvidia reported strong earnings in the first quarter of the year.
The company reported an over 260% increase in revenue compared to the first quarter in 2023, while data center revenue jumped 427% from last year to $22.6 billion, an increase fueled in part by the demand for generative AI training, the company said.
“The next industrial revolution has begun,” Jensen Huang, Nvidia founder and CEO, exclaimed in a May press release announcing first quarter results. “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.”
Nvidia stock price
Nvidia stock closed trading at $1,224.40 per share on Wednesday.
If the stock were to have split Wednesday it would have been valued at $122.44 per share. The ticker has risen just under 29% between the stock split announcement on May and the close of trading Thursday.
This article originally appeared on USA TODAY: When is Nvidia stock split? Key dates to know ahead of 10-to-1 split
Source: finance.yahoo.com