Stock-Split Watch: Is Nvidia next?

It was almost a year ago Nvidia (NVDA -2.02%))) Last division of his stock. This 10-to-1 share split has been the sixth in the history of the company since entering the public markets in 1999. The shares marched to an all-time shot about six months after the stocks of the stock of June.

Since then, stocks have withdrawn together with many others than the Nasdaq Composite The index briefly entered the bear's market area in early April and declined by more than 20% to the latest highs. However, Nvidia was resilient and his share prices recently recovered. While the downturn on the stock exchange may not yet end, he will at some point win again on the floor. NVIDIA still has a leading business through artificial intelligence (AI), games, robotics, driver aid and self -driving technologies.

Stock-split facts

This business should attract investors for Nvidia shares. However, further share split could also be in the future. And the story shows that the possession of shares before they share can pay off.

To determine why that could be, let's take a look at the reasons why companies divide their shares at all. Finally, a division does not affect the company's value and even adds some expenses in logistics, legal costs and other nominal costs.

The division of a share can increase liquidity by becoming more affordable for a larger group of investors. Retail investors are probably part of the increased trading volume, as cheaper shares for those who are just starting or investing with limited funds look more attractive. Fractions are now offered by many brokers, but most people probably do not use this rarely obliged option. A lower share price can therefore address more buyers. It is a perception of affordability.

Companies also tend to share stocks that are tasted higher. The announcement of a separation gives investors that the further strong performance progresses. The stock can also be contained in more important stock indices, especially in those who use inexpensive calculations. Finally, splits can also be announced by the company's employees. Purchase plans for employee shares can receive more participation if the shares are more affordable for the participants.

Value for Nvidia

While stock columns do not directly influence the value of the company, market capitalization does not change directly, and market capitalization cannot change that the perception and market activity of investors can tend to support future performance. NVIDIA management can also go beyond short-term volatility with regard to positive future business developments in order to gain trust in order to announce further stock splitting.

Most investors focus on the growing sales of Nvidia's growing data center. This segment accounted for most of its sales growth in the past financial year on January 26, 2025. But each of the other three segments has increased sales annually in the past two years. Playing is a segment of more than 10 billion US dollars. In the past year, however, it was only about 9% of sales, so that many investors discount the other Nvidia growth areas.

Perhaps the greatest growth potential results from the final use of automotive and robotics. This segment is located on a much lower base than data centers, and its entire addressable market could be ready to go through a growth thrust. With the car manufacturers, advanced driver aid packages will already belong and may be short of the sale of completely autonomous vehicles. Robotics technology can also be at the transition of inpatient industrial income to mobile, humanoid versions that companies can help to further improve efficiency.

Does a share come divided?

These are better reasons to buy Nvidia shares than to expect the next shares. The story shows that a shared announcement could lead to market -populated returns. However, I think that the Nvidia share will only exceed the market for fundamental reasons.

Nvidia's administration and board of directors will probably wait for the current market turbulence to settle before shared its next shares. However, it makes sense that investors have the stock regardless of this. In this way, you can take part in a rapidly growing company together with future stock columns, which may be announced.