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Here's What Happened After Nvidia's Last 3 Stock Splits (and What That Means for the Stock Today)

Are more gains on the horizon for Nvidia?

Here's What Happened After Nvidia's Last 3 Stock Splits (and What That Means for the Stock Today)

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{"i18n":{"language":"en_US"},"data":{"magic":2,"id":315355980750920,"tweetId":"315355980750920","gmtCreate":1718022621050,"gmtModify":1718022625876,"author":{"id":4111842224562182,"idStr":"4111842224562182","authorId":4111842224562182,"authorIdStr":"4111842224562182","name":"DailyTrader7","avatar":"https://community-static.tradeup.com/news/221e86f826e5d51d2c15d2af518a6f07","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":10,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>LFG!!</p></body></html>","htmlText":"<html><head></head><body><p>LFG!!</p></body></html>","text":"LFG!!","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/315355980750920","repostId":2442858716,"repostType":2,"repost":{"id":"2442858716","kind":"highlight","pubTimestamp":1717992495,"share":"https://www.laohu8.com/m/news/2442858716?lang=&edition=full","pubTime":"2024-06-10 12:08","market":"us","language":"en","title":"Here's What Happened After Nvidia's Last 3 Stock Splits (and What That Means for the Stock Today)","url":"https://stock-news.laohu8.com/highlight/detail?id=2442858716","media":"Motley Fool","summary":"Are more gains on the horizon for Nvidia?","content":"<html><head></head><body><ul style=\"\"><li><p>Nvidia just completed its 10-for-1 stock split, and shares are about to start trading at the split-adjusted price.</p></li><li><p>This represents the company’s sixth such operation -- the most recent was back in 2021.</p></li></ul><p>Nvidia&#39;s recent stock split may have been one of the most anticipated events on investors&#39; financial calendars. On June 7, the company completed its 10-for-1 stock split, and the stock will begin trading at the split-adjusted price on Monday, June 10. A stock split involves issuing more shares to current holders to bring down the price of a stock that&#39;s reached high levels. This doesn&#39;t change the overall market value of a company or a stock&#39;s valuation, but only the per-share price.</p><p>Since stock splits are purely mechanical, they aren&#39;t a reason for you to buy or sell a particular stock -- and that means they aren&#39;t known to prompt stock gains or declines. Still, it&#39;s interesting to take a look at a stock&#39;s path following a split, and now is the perfect time to look back at Nvidia&#39;s performance after its past few splits.</p><p>Does history offer us clues about how Nvidia stock may perform in the coming months? Let&#39;s find out.</p><h2 id=\"id_1480871505\">Nvidia&#39;s past three stock splits</h2><p>Prior to last week&#39;s operation, Nvidia had performed a total of five stock splits over time, but we&#39;ll consider only the past three. These happened in July of 2021, September of 2007, and April of 2006.</p><p>In the two earlier periods, the stock fell right after the split, but then went on to gain in the following months. After the 2007 split, though, Nvidia shares declined from their post-split high and spent some time trending lower.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c705f7a51227611ff29f71e6fe6ff4d7\" alt=\"NVDA data by YCharts\" title=\"NVDA data by YCharts\" tg-width=\"720\" tg-height=\"441\"/><span>NVDA data by YCharts</span></p><p>After the next stock split, in 2021, the shares followed a similar pattern -- but then, about a year later, they started picking up momentum.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3c63ab0176612cff6758130eef5a49dc\" alt=\"NVDA data by YCharts\" title=\"NVDA data by YCharts\" tg-width=\"720\" tg-height=\"441\"/><span>NVDA data by YCharts</span></p><p>And by 2023, they were roaring higher, buoyed by optimism about artificial intelligence (AI)-related revenue.</p><p>So, what does this tell us about what might happen with Nvidia shares in the months to come? It&#39;s important to remember that Nvidia was quite a different company a few years ago, with its high-powered chips generating most of their revenue in the gaming industry.</p><p>Over the past few years, Nvidia&#39;s sales of its graphics processing units (GPUs) to customers in the AI space have skyrocketed, and that business has soared past the gaming one. For example, in the most recent quarter, gaming revenue came in at $2.6 billion, while data center revenue topped $22 billion.</p><h2 id=\"id_1881564342\">A tough comparison</h2><p>This means it&#39;s difficult to compare Nvidia&#39;s share performance in the pre-AI-boom days to the stock performance of today. Of the charts, though, the 2021 one is the most relevant because around this time, Nvidia was seeing increasing revenue at its data center business. For example, in the first quarter of 2021, data center revenue was already climbing in the double digits.</p><p>But here&#39;s the key element to note: The progressive gains we saw in the years following the 2021 stock split weren&#39;t due to the stock split itself. Instead, Nvidia&#39;s impressive revenue growth and investor optimism about its future in AI spurred the performance.</p><p>And now, as we look forward, this same element could continue to boost Nvidia&#39;s shares. After all, we&#39;re still in the early days of AI development, suggesting more and more companies will sign up for Nvidia&#39;s products and services.</p><p>So, as we can see in the charts above, Nvidia&#39;s past stock splits didn&#39;t produce any clear pattern that may be replicated. Yes, the stock did slip post-split and then go on to gain -- but these movements most likely were driven by investors locking in profits or switching in or out of Nvidia for fundamental reasons. The stock splits themselves didn&#39;t provide direction for the stock.</p><p>Today, this confirms that the most recent stock split won&#39;t serve as a catalyst for share performance. If Nvidia stock rises, falls, or stagnates in the coming weeks or months, we can attribute the movement to news related to earnings prospects -- not to the stock split.</p><p>All of this means that today the best way to predict Nvidia&#39;s future stock performance is to closely watch the company&#39;s next moves -- to see if it can stay ahead of rivals and dominate in the high-growth AI market.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's What Happened After Nvidia's Last 3 Stock Splits (and What That Means for the Stock Today)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's What Happened After Nvidia's Last 3 Stock Splits (and What That Means for the Stock Today)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-10 12:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/06/09/what-happened-after-nvidias-last-stock-splits/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia just completed its 10-for-1 stock split, and shares are about to start trading at the split-adjusted price.This represents the company’s sixth such operation -- the most recent was back in 2021...</p>\n\n<a href=\"https://www.fool.com/investing/2024/06/09/what-happened-after-nvidias-last-stock-splits/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0109391861.USD":"富兰克林美国机遇基金A Acc","BK4581":"高盛持仓","LU0072462426.USD":"贝莱德全球配置 A2","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0238689110.USD":"贝莱德环球动力股票基金","LU0082616367.USD":"摩根大通美国科技A（dist）","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0056508442.USD":"贝莱德世界科技基金A2","LU0080751232.USD":"富达环球多元动力基金A","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4529":"IDC概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4532":"文艺复兴科技持仓","BK4592":"伊斯兰概念","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4585":"ETF&股票定投概念","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4587":"ChatGPT概念","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0109392836.USD":"富兰克林科技股A","BK4527":"明星科技股","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","BK4543":"AI","BK4588":"碎股","BK4579":"人工智能","BK4141":"半导体产品","BK4503":"景林资产持仓","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4551":"寇图资本持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close"},"source_url":"https://www.fool.com/investing/2024/06/09/what-happened-after-nvidias-last-stock-splits/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2442858716","content_text":"Nvidia just completed its 10-for-1 stock split, and shares are about to start trading at the split-adjusted price.This represents the company’s sixth such operation -- the most recent was back in 2021.Nvidia's recent stock split may have been one of the most anticipated events on investors' financial calendars. On June 7, the company completed its 10-for-1 stock split, and the stock will begin trading at the split-adjusted price on Monday, June 10. A stock split involves issuing more shares to current holders to bring down the price of a stock that's reached high levels. This doesn't change the overall market value of a company or a stock's valuation, but only the per-share price.Since stock splits are purely mechanical, they aren't a reason for you to buy or sell a particular stock -- and that means they aren't known to prompt stock gains or declines. Still, it's interesting to take a look at a stock's path following a split, and now is the perfect time to look back at Nvidia's performance after its past few splits.Does history offer us clues about how Nvidia stock may perform in the coming months? Let's find out.Nvidia's past three stock splitsPrior to last week's operation, Nvidia had performed a total of five stock splits over time, but we'll consider only the past three. These happened in July of 2021, September of 2007, and April of 2006.In the two earlier periods, the stock fell right after the split, but then went on to gain in the following months. After the 2007 split, though, Nvidia shares declined from their post-split high and spent some time trending lower.NVDA data by YChartsAfter the next stock split, in 2021, the shares followed a similar pattern -- but then, about a year later, they started picking up momentum.NVDA data by YChartsAnd by 2023, they were roaring higher, buoyed by optimism about artificial intelligence (AI)-related revenue.So, what does this tell us about what might happen with Nvidia shares in the months to come? It's important to remember that Nvidia was quite a different company a few years ago, with its high-powered chips generating most of their revenue in the gaming industry.Over the past few years, Nvidia's sales of its graphics processing units (GPUs) to customers in the AI space have skyrocketed, and that business has soared past the gaming one. For example, in the most recent quarter, gaming revenue came in at $2.6 billion, while data center revenue topped $22 billion.A tough comparisonThis means it's difficult to compare Nvidia's share performance in the pre-AI-boom days to the stock performance of today. Of the charts, though, the 2021 one is the most relevant because around this time, Nvidia was seeing increasing revenue at its data center business. For example, in the first quarter of 2021, data center revenue was already climbing in the double digits.But here's the key element to note: The progressive gains we saw in the years following the 2021 stock split weren't due to the stock split itself. Instead, Nvidia's impressive revenue growth and investor optimism about its future in AI spurred the performance.And now, as we look forward, this same element could continue to boost Nvidia's shares. After all, we're still in the early days of AI development, suggesting more and more companies will sign up for Nvidia's products and services.So, as we can see in the charts above, Nvidia's past stock splits didn't produce any clear pattern that may be replicated. Yes, the stock did slip post-split and then go on to gain -- but these movements most likely were driven by investors locking in profits or switching in or out of Nvidia for fundamental reasons. The stock splits themselves didn't provide direction for the stock.Today, this confirms that the most recent stock split won't serve as a catalyst for share performance. If Nvidia stock rises, falls, or stagnates in the coming weeks or months, we can attribute the movement to news related to earnings prospects -- not to the stock split.All of this means that today the best way to predict Nvidia's future stock performance is to closely watch the company's next moves -- to see if it can stay ahead of rivals and dominate in the high-growth AI market.","news_type":1},"isVote":1,"tweetType":1,"viewCount":274,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":5,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}