Nvidia (NVDA) shares began trading on a new 10-for-1 split basis, reducing the stock price from $1208.88 to $120.88. This move makes owning Nvidia shares more accessible to retail investors.

Stock splits, like this one, lower the price of individual shares without diluting the value of existing shareholders’ total holdings. Essentially, if you owned 4 shares of Nvidia before the split, you now own 40 shares. This change is particularly beneficial for options traders who have been eagerly anticipating the split due to the high prices and implied volatility of Nvidia’s options.

Key Highlights:

• Nvidia’s stock split comes after its market cap briefly surpassed $3 trillion, making it the second-most-valuable publicly traded US company.

• First quarter results: $6.12 EPS on $26 billion revenue, a significant increase from the previous year.

• Data Center revenue surged 427% year over year, driven by demand from major tech companies for generative AI.

Stock splits are generally seen as a sign of a company’s strength and often lead to above-average performance. Historically, stocks that split have outperformed the S&P 500 by a substantial margin in the year following the split.

How do you think Nvidia’s stock split will impact its future growth and accessibility to retail investors?