Nvidia Executed a 10-for-1 Stock Split. Here's What Happened the Last 5 Times the Artificial Intelligence (AI) Stock Split.
Nvidia (NASDAQ: NVDA) recently executed a 10-for-1 stock split to reset its share price, which had surged 725% during the preceding 18 months. The driving force behind that performance was booming interest in artificial intelligence. However, the odds are now stacked against Nvidia. History says the stock is headed for a sharp decline.
Nvidia announced its stock split on May 22, and its share price has since increased 33%. But since 2010, companies have seen their share prices increase just 18.3% on average during the 12 months following a stock split announcement, according to Bank of America. That implies about 15% downside for Nvidia over the next 11 months.
Even more worrisome, Nvidia has consistently lost momentum following previous stock splits. Here's what happened the last five times.
Source Fool.com
