Meet Wall Street's Newest Artificial Intelligence (AI) Stock-Split Stock (No, It's Not Nvidia)
Some companies create so much value over the long term that their stock prices soar into the hundreds, or even thousands of dollars, making them somewhat inaccessible to smaller investors.
For example, Nvidia stock recently traded above $1,200 following a whopping 205% gain over the past year, as sales surged for its artificial intelligence (AI) data center chips. As a result, the company just executed a 10-for-1 stock split that increased the number of shares in circulation tenfold while reducing the price per share by 90%. Now investors can buy a share in Nvidia for just $129.
Stock splits are purely cosmetic, so they don't affect the value of the underlying company. But they can attract a broader group of investors, which often drives the Stock price higher when the new group of investors swoops in and starts buying.
Source Fool.com
