Check out the gain/fall rate after the US high-tech stock split! Is NVIDIA up one more step? 5 points to keep in mind when splitting

The companyAfter the stock split was announcedIt has risen more than 20% in 4 days, and the year-to-date rate of increase has reached 130%. The split implementation date is scheduled to be 6/7. The past of US super-large high-tech stocksPerformance after implementing the stock splitIf you look,Stock prices have been rising over the long term. However,There is a possibility of short-term adjustments. Here it is”Buy with speculation (expectation) and sell with factsThe law of stocks called” may apply. For example, Apple announced a 1:4 stock split on 2020/7/30, surged close to 6% outside of hours, and surged 10.5% the next day. In 1 month from the split announcement date to the implementation date,37% surgeHowever, although it rose for 2 days after the split,Investors who were investing in anticipation of stock splits began to determine profits、Apple 25% for half a monthIt has declined.

Therefore, it is necessary to have a deeper understanding of the impact of NVIDIA's stock split. Below are 5 points to keep in mind when splitting NVIDIA's stock.

A stock split indicates that an enterprise divides existing expensive shares into a plurality of low-priced shares, thereby increasing the number of issued shares. Stock splits do not change the total market value of a company,Companies continue to expand their business, and earnings forecasts are goodSo,It is often done when investors have a very high level of trust in a company's stock price. Stock prices will drop after the split, and more individual investors will gather,Companies with good fundamentals tend to see short-term increases in stock prices after a split。

NVIDIA's stock split will be implemented after the US stock market closes on 2024/6/7, and trading is scheduled to begin on 6/10 on a basis after split adjustments.

NVIDIA's stock split can be said to be “within expectations,” but the stock splitdetonatorsThere is a possibility that stock prices will continue to rise as a result. Furthermore, in the case of NVIDIA, stock splits have another advantage. That is,There is a growing possibility that it will be adopted by the Dow Jones Industrial Average (Dow), which consists of excellent stocksThat's it.

NVIDIA has carried out 5 stock splits so far. Looking back on past stock splits,There are many cases where stock prices rise drastically from the date of announcement until the effective date. Meanwhile,Stock prices tend to fall on the day of the split. After that,It rebounded and returned to an uptrend againIt is said that they will.

Is BofA a company that has had a stock splitThe trend of increasing strong returns over the next yearI pointed out that there is one. According to the data,Companies that announce stock splits usually outperform the marketThere is a tendency to show According to an analysis by the Bank of America Global Research Center, the stock prices of the S&P 500 constituent stocks that announced stock splits after 1980Significantly outperformed the same index 3 months, 6 months, and 12 months after the announcementYes, and the average stock price is 12 months25.4%Whereas it rose, the S&P 500 index was in the same period11.9%It only continued to rise.

Since last year, from chips to utilities,All companies related to NVIDIA are benefiting from the AI boom and improving their high performance. Therefore,The movement of NVIDIA shares after the split is also deeply related to the future development of this ecosystem。