Is This Trillion-Dollar Company About to Join Nvidia in the Stock-Split Club?
Stock splits are back in focus once again, after semiconductor giant Nvidia announced during its fiscal 2025 first-quarter report (for the quarter ended May 22) that it intended to split.
Nvidia's 10-for-1 forward stock split went into effect on June 7. It wasn't surprising to see Nvidia take this step, even though a stock split is simply a cosmetic move that reduces the price per share of a company in lieu of an increase in outstanding shares. After all, Nvidia stock has climbed a tremendous 727% since the beginning of 2023 thanks to the robust demand for its artificial intelligence (AI) chips.
Nvidia management pointed out that the split has been done "to make stock ownership more accessible to employees and investors." It's also worth noting that Nvidia is the sixth S 500 company to execute a stock split this year, and Bank of America analysts believe that more splits in the technology arena could be on the way.
Source Fool.com
