Nvidia's stock split will likely cause a retail buying frenzy, with its shares to trade under US$200 for the first time in 16 months. And will Broadcom and Netflix split next?

Let me say that in a different way for perspective. Last Friday, May 24, Nvidia shares closed at US$1,064.69 after rising 115% this year. But in nine trading days, on June 10, Nvidia, the fastest-growing mega-cap company, the third biggest company in the world, will trade under US$200 after its stock split.

Why split? Companies split their stocks to increase retail share ownership. But looking back at history, we know a companies shares tend to see strong returns in the subsequent year post a split.

- Nvidia has 90% market share in the semiconductor industry.

- The majority of its growth is in the data center business. But that pipeline is growing. Nvidia rolled out its more expensive H200 chip this quarter. Imagine what will happen once its new collaborations with healthcare companies start to appear on their balance sheet. It expands the company's revenue breadth and will add diversification to its book.

- Nvidia only just annouced collaborations with health care giants such as GE, J&J and Novo (as we mentioned in our moomoo webinar).