On June 10th local time, Nvidia's stock price rose slightly by 0.75% on the first trading day after the "One Split Ten" split, closing at $121.79 per share, with a market value of $3 trillion, while Apple's market value was $2.96 trillion. Before the split, Nvidia's stock price was around $1200 per share, but after the split, its stock price per share decreased to about one tenth of its original value.
After the split, the proportion of shares held by the original shareholders remains unchanged, and the face value per share decreases. The original shareholders will receive an additional 9 shares, and the number of circulating shares in the company will increase. In May of this year, Nvidia announced a stock split plan, increasing the quarterly cash dividend per common share from $0.04 to $0.1. Generally speaking, stock splits can increase stock liquidity and facilitate the entry of individual investors.
Over the past year, Nvidia's stock price has shown an upward trend. As of the close on June 7th local time, Nvidia's stock price has risen by 144.12% this year, and compared to the beginning of 2023, Nvidia's stock price has risen by 727.61%.
Ben Laidler, an analyst at financial services company eToro, said that after Nvidia divests, it may become a constituent stock of the Dow Jones Index, which could push Intel, a chip company with lower weight, out of the index. As of the close of June 10th local time, Intel's stock price has risen by 0.55%, with a cumulative decline of 38.06% for the year.
Nvidia had previously split its shares five times. In 2021, when Nvidia's stock price was around $600, Nvidia split into four shares, and after the split, the stock price returned to a level of over $100. After the split, Nvidia's stock price showed a downward trend in 2022, but the cumulative stock price increased by more than twice for the whole year of 2023. In 2000, 2001, and 2006, Nvidia split its stocks in a split of two, and in 2007, it split its stocks in a split of two and three. This year's stock split is the highest among Nvidia's stock splits.
Prior to the stock split, Bank of America stated in its latest report that Nvidia's stock price still had greater upward potential, with analysts setting a 12-month target price of $1500 per share for the stock. Goldman Sachs previously raised Nvidia's target price from $1100 to $1200, believing that there is still great potential for improvement in Nvidia's profit forecast.
On June 2nd, Nvidia CEO Huang Renxun revealed that Nvidia's Blackwell chip has been put into production, and Nvidia will continue to update it once a year. In 2025, Nvidia will launch Blackwell Ultra, a new architecture Rubin in 2026, and Rubin Ultra in 2027. On June 6th local time, Nvidia's market value exceeded $3 trillion, surpassing Apple to become the second largest company in the US stock market. As of the close of June 10th local time, Apple's market value is $2.96 trillion, and Nvidia's market value still exceeds Apple's.