$NVIDIA (NVDA.US)$ recent 10-for-1 stock split, effective Ju...
$NVIDIA (NVDA.US)$ recent 10-for-1 stock split, effective June 7, 2024, has sparked considerable interest and speculation in the market. The split aims to make the stock more accessible to retail investors and potentially pave the way for NVIDIA's inclusion in the Dow Jones. The immediate market reaction saw some volatility, but NVIDIA's stock closed positively at $121.79, up 0.75%.
The split follows an exceptionally strong performance period for NVIDIA. In its latest quarter, the company reported revenue of $26.04 billion, a 262% increase from the previous year. This outperformance was primarily driven by the Data Center segment, which saw a staggering 427% growth to $22.6 billion. This surge is attributed to the high demand for generative AI training on the Hopper platform. Other segments, such as Automotive and Gaming, also showed positive year-over-year growth, albeit at lower rates.
Historically, stock splits tend to boost investor sentiment and liquidity. For example, $Apple (AAPL.US)$ and $Tesla (TSLA.US)$ recent stock splits led to significant post-split rallies. NVIDIA’s strong fundamentals and growth prospects, particularly in AI and data centers, suggest a similar positive trajectory. Analysts have raised their price targets, reflecting confidence in NVIDIA's continued dominance in the semiconductor market.
Historically, stock splits tend to boost investor sentiment and liquidity. For example, $Apple (AAPL.US)$ and $Tesla (TSLA.US)$ recent stock splits led to significant post-split rallies. NVIDIA’s strong fundamentals and growth prospects, particularly in AI and data centers, suggest a similar positive trajectory. Analysts have raised their price targets, reflecting confidence in NVIDIA's continued dominance in the semiconductor market.
NVIDIA’s move is seen as a strategic step to attract a broader investor base and enhance market capitalization, aligning with its long-term growth strategy. The company’s robust performance and promising future outlook make it a compelling investment, even in the wake of the stock split.
Given these factors and the stock’s adjusted lower price post-split, it could be a good time to look into NVIDIA. The company's position as a leader in AI and data centers, combined with its strategic market moves and strong financial performance, make it a potentially lucrative investment opportunity.
Given these factors and the stock’s adjusted lower price post-split, it could be a good time to look into NVIDIA. The company's position as a leader in AI and data centers, combined with its strategic market moves and strong financial performance, make it a potentially lucrative investment opportunity.
P/S: This is not a Buy nor Sell recommendation.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Spread Love N Joy : I’m not sure removing the Big Investors Money and replacing it with Poor Investors Money is a good thing. All morning I seen SALES of hundreds to thousands of shares while BUYS were an endless line of 1 share.
Several big firms and players don’t want to watch the retail investors play around now because the retail investors will make this a volatile roller coaster with their emotional and rumor trading.
Too many people here now who don’t understand anything about investing and about NVDA, thinking their 1 share will be worth $1,000 after a week, then panicking and selling. Big money stays in long but small money is always in and out. I’m in LONG and looking to mid 2026 before I even think about selling… but probably more like 2030 for me.
Ahmad Fidauddin OP Spread Love N Joy : Your concerns about the shift from big investors to small investors in NVDA are valid. the influx of small investors can indeed lead to increased volatility, as their trading patterns often involve more emotional and rumor-driven decisions. this can create a roller coaster effect, with frequent buying and selling based on short term movements rather than a longer horizon/ long-term fundamentals.
stock markets have always followed trends, and lately, NVIDIA has become a hot topic that everyone is talking about. Even those who were never interested in the stock market want a piece of the pie. It's simillar to how everyone wanted a piece of the pie with NFT'S and bitcoins when they were trending.
Market has always had a mix of investors with varying strategies and risk appetites. presence of them, can contribute to short-term volatility. Also brings liquidity and diverse perspectives to the market.
Aaron Invests (AI) Spread Love N Joy : I see voilatility as an opportunity. Yes it may cause emotions however if you set your emotions right, you can really make profits
Mr Pistachio : retail supplies liquidity to the market.If they don't sell the BBs can't buy
Spread Love N Joy : I guess…. If the BBs even want back in. Last quarter 300+ hedge funds bailed on NVDA. Hopefully it works out.
Yesterday pre I was watching orders and it was alarming. Endless purchases for 1 share and rarely seen more than 10. On the sell side rarely seen orders for under 100 and most were 500+ and several thousands each.
Spread Love N Joy Ahmad Fidauddin OP : Thanks. Basically what I was trying to say but said much better.