Bloomberg reports indicate that NVIDIA $NVDA is contemplating a stock split as it edges closer to the significant $1,000 mark. This potential move comes amid a period of remarkable growth for the company’s stock.
NVIDIA’s stock has seen a staggering 85% surge since the beginning of 2024, with an equally impressive nearly 300% increase over the past year. This surge has been largely fueled by the ongoing AI boom, which has bolstered investor confidence in the company’s prospects.
Ken Mahoney, the President and CEO of Mahoney Asset Management, has voiced his anticipation of a stock split within the coming year. Mahoney believes that such a move would make NVIDIA more accessible to smaller retail investors who currently perceive it as out of reach due to its high stock price.
The last time NVIDIA executed a stock split was in May 2021, implementing a four-for-one split when shares were trading around $600. With the stock now nearing the $1,000 mark, speculation is rife about the possibility of another split being announced.
When NVIDIA announced the stock split in 2021, the company emphasized its commitment to making stock ownership more accessible to investors and employees alike. This aligns with the broader trend in the financial markets towards democratizing access to investment opportunities.
Mizuho analysts recently raised their price target on NVIDIA to $1,000, citing it as the “biggest near-term AI winner.” They foresee continued strength in NVIDIA’s AI revenues through 2027, driven by anticipated advancements in AI technology.
The analysts project a robust AI ramp for NVIDIA, with GH200/B100/B200, which could result in approximately $89 billion in data center revenues by 2024. Furthermore, they estimate that NVIDIA’s AI data center revenues could potentially reach around $280 billion by 2027.
The current surge in NVIDIA’s stock price underscores the company’s prominent position in the AI industry. Investors are increasingly bullish on NVIDIA’s prospects, given its strong track record of innovation and leadership in key AI technologies.
NVIDIA’s previous stock split was aimed at broadening participation in ownership and increasing liquidity in the company’s shares. This move reflects NVIDIA’s commitment to fostering a diverse and inclusive shareholder base.
As NVIDIA’s stock approaches the significant $1,000 milestone, market observers are closely monitoring for any announcements regarding a potential stock split. Such a move could have significant implications for the accessibility of NVIDIA’s stock to a broader range of investors, further driving interest in the company’s shares.
Update:
The NVDL ETF from GraniteShares has experienced a substantial increase in assets, propelled by a $1 billion influx and the rise of Nvidia’s stock. With the continuous surge in AI stocks, investors are pondering the possibility of Nvidia opting for a stock split to enhance accessibility for a broader investor spectrum. Mahoney Asset Management foresees a split happening within the next year, citing Nvidia’s past tendencies to split its stock in order to appeal to a wider array of investors.
Investors have poured funds into the NVDL ETF, boosting its assets to $2 billion and doubling the return on Nvidia Inc. stock. The fund has garnered $1.02 billion in investments this year, with over half of it recorded on March 11. Coupled with an almost three-fold price increase since the beginning of the year, NVDL’s assets under management stood at $1.98 billion as of early March 13.
