Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) last night revealed it intends to make its shares more appealing to retail investors.
It is not so much that the investment case particularly needs a polish, rather than the company’s phenomenal phase of growth has left the shares out of reach of some investors.
AI-driven growth has propelled Nvidia’s price to $1,039, valuing the chipmaking business at $2.56 trillion.
Nvidia, in last night’s quarterly earnings, announced a 10-for-1 stock split which (all other things being equal) will bring the price into a much more affordable level of around $100 per share.
The chipmaker said it was making the change “to make stock ownership more accessible to employees and investors.”
At the same time, Nvidia also said it would reward existing shareholders with a 150% increase in its quarterly dividend.
Revenue rose 262% to $26 billion, beating estimates of $24.6 billion. Data center revenue hit a record $22.56 billion, driven by AI chip sales. Gaming revenue reached $2.65 billion, up 18% year-over-year but down 8% sequentially due to lower GPU sales for laptops. Adjusted EPS soared 629% to $6.12, exceeding estimates of $5.65.
Shares of NVIDIA were up another 10% on Thursday morning in New York at nearly $1,047.