Nvidia Is Conducting a 10-for-1 Stock Split: 7 Reasons to Completely Avoid Wall Street's Hottest Artificial Intelligence (AI) Stock
Over the last couple of years, the two hottest trends on Wall Street have been artificial intelligence (AI) and companies enacting stock splits. In the days to come, these two catalysts will collide for the hottest megacap stock of them all, Nvidia (NASDAQ: NVDA).
A "stock split" is a purely cosmetic event that allows a publicly traded company to change its share price and outstanding share count by the same factor. It's cosmetic in the sense that it doesn't impact a company's market cap or operating performance.
On May 22, Nvidia announced that its board had approved a 10-for-1 forward split. In other words, shareholders will own 10 times as many shares, with the share price being reduced to 1/10th of what it is now. When the market opens for business on Monday, June 10, Nvidia will be trading at its split-adjusted share price.
Source Fool.com
