Stock splits are exciting events that can spark investor interest. While they are mostly cosmetic in nature, they can have a huge impact on options strategies, employee compensation and index fund inclusion. Currently Nvidia (NASDAQ: NVDA) the stock price is around $200.
Is it expensive enough for Nvidia to announce a stock split? Or will investors have to wait for another one of these exciting developments to be announced?
There have been a total of six stock splits in Nvidia’s history. The most recent occurred in 2021 and 2024, each following a first-quarter earnings report. in 2024 the split was 10-for-1, and Nvidia’s stock price was adjusted to $1,220. in 2021 Shares of Nvidia split as high as $744.
Both of these prices are much higher than Nvidia’s current prices, but that’s not the only factor to consider. Nvidia is a “ Dow Jones Industrial Average (DJINDICES: ^DJI)which is a price-weighted index. This means that the companies must remain at roughly the same dollar per share level. Otherwise, they can derail the entire index.
Nvidia was included in this index in 2024. in November, after the last stock split, so we don’t have a history of what Nvidia’s stock split will be once it’s included in the Dow Jones index. However, Nvidia is currently the 17th largest component of the 30-stock index, indicating that its stock price is lower than the average stock in the index.
Nvidia is unlikely to announce a stock split on November 19. But there are plenty of other reasons to be excited about Nvidia’s prospects, and it’s worth considering buying now.
Nvidia’s graphics processing units (GPUs) are the computing backbone of the AI race. AI hyperscalers are spending hundreds of billions of dollars in data center development this year, and are expected to grow by 2026. this number will increase significantly again. Nvidia is one of the biggest beneficiaries of this AI race.
One of the latest revelations made by CEO Jensen Huang is a log of orders for cutting-edge computing chips. They already have about $300 billion in orders for these chips over the next five quarters, which suggests that Nvidia could achieve incredible growth next year. Time will tell if Nvidia can actually convert those sales, as supply may exceed demand for its GPUs. But it’s still worth noting, especially considering that Nvidia made $165 billion in the last 12 months.
