Nvidia Has Completed Its 10-for-1 Stock Split: 2 Hypergrowth Stocks Are Dark Horse Candidates to Follow in Its Footsteps
For more than a year, the two hottest trends on Wall Street have been the rise of artificial intelligence (AI) and investors' newfound love for companies enacting stock splits. Last week, these two trends collided when AI titan Nvidia (NASDAQ: NVDA) completed a 10-for-1 stock split.
A stock split is a purely cosmetic event that alters a company's share price and outstanding share count by the same magnitude. In Nvidia's case, it increased the company's share count by a factor of 10 while reducing its share price to 1/10th of what it had been trading at. Stock splits have no impact on a company's market cap or its underlying operations.
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Source Fool.com