3 Reasons to Buy Nvidia After Its Stock Split and 1 Reason to Sell

One of the most anticipated stock market events just happened recently: Artificial intelligence (AI) chip giant Nvidia (NASDAQ: NVDA) completed a stock split, bringing down the price of its stock to about $120 from more than $1,200. The 10-for-1 split took place on June 7, and the stock began trading at its new price at the start of trading this week.

Nvidia has been in the spotlight for the past couple of years thanks to its soaring earnings and share price -- the stock has climbed more than 500% over the past three years. And there's a good reason for this kind of success: The company sells the world's top-performing graphics processing units (GPUs), chips that power crucial AI tasks, as well as entire platforms for AI customers. In the most recent quarter, its fiscal 2025 second quarter, Nvidia reported a record $22.6 billion in data center (this includes all AI-related business) revenue, a triple-digit percentage gain from the year-earlier period.

Now, with the stock trading at one-tenth of its former price, you may be wondering if you should get in on Nvidia. Before deciding, let's consider three reasons to buy and one reason to sell.

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Source Fool.com