Nvidia's 10-for-1 Stock Split Comes With a Warning. History Says the Artificial Intelligence (AI) Stock Could Do This Next.
Nvidia (NASDAQ: NVDA) completed its 10-for-1 stock split after market close on Friday, June 7. Like most forward stock splits, this one followed significant share price appreciation. The stock surged 225% during the past year and 850% since November 2022, when the launch of ChatGPT sparked the artificial intelligence (AI) gold rush.
Nvidia remains well-positioned to benefit as more businesses invest in AI. Indeed, it is arguably the best pure-play AI stock. However, stock splits have historically been bad news for Nvidia shareholders. The company's value has declined by an average of 23% during the 12-month period following past splits.
Here's what investors should know.
Source Fool.com
