When the Nvidia Corp share price was having meteoric rise, hitting $3 trillion market cap and pipping even Apple in market cap, there was wide spread optimism about the Nvidia stock. And then came the news of stock split.
Is Nvidia repeating its history? Nvidia Corp stock has behaved in a similar pattern post the split. Nvidia Corp shares have undergone total five splits over time. In the first two, it fell after the split to recover later.
From the later splits of April 2006, September 2007 and July 2021, it was only in 2007 that it spent some time trending lower from its post-split high.
A stock split brings down the share price, which has reached very high levels; by issuing more shares to its shareholders, it simply does not change the overall market value of a company, but just the per-share price.
The stock, though currently trading in over bought zone had been so during 2016-2018 and 2020-2021 also but returning to much higher price action later.
Earlier, it was being said that Tech optimism around artificial intelligence (AI), is propelling top AI stocks to new highs. The moot question is, are Artificial Intelligence Stocks facing fatigue now?
A cursory look at Nvidia’s journey following a split would throw light on whether this is the best time to buy Nvidia stock. In the past, the company’s stocks declined post split to gain buying momentum later and reaching fresh highs.
The company is turning out to be one of the most valuable company and its stock among the Best AI Stocks. The stock split could facilitate in making Nvidia a candidate for the Dow 30, which is a price-weighted index.
Nvidia has now established itself well as a dominant force in the technology sector. Its recent first-quarter results beat the estimates with sales climbing 262% to $26 billion while earnings at $6.12 per share surged 461%.
Nvidia Corp Common Stock almost tripled in 2024. Demand for Nvidia’s chips outstrips its supply. The company is in most advantageous position with a surge happening in AI spending.
With this backdrop, it is felt that Nvidia is offering another opportunity to invest. The stock’s ongoing correction may be short lived as it has strong technical supports at $111 and $102, from where it may rebound with a potential to reach new high.
Disclaimer - This information is for general purpose only, please do your research before making any investment decisions
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