NVDA Stock Split: What Nvidia’s Stock Split Means for Investors

The NVDA stock split has been one of the most closely watched events in years.  Nvidia split its stock almost a year ago, and we are just now starting to see the results of that move come in. The question remaining on everyone’s mind is, will this stock split again? And what is a stock split exactly anyway? Below, we break down how stock splits work, NVDA’s stock split, and what the future might hold for NVDA.

What is a stock split?

A stock split increases the number of a company’s shares by dividing existing ones, while proportionally reducing the share price. It’s financial sleight of hand, value-neutral in theory, but often sentiment-positive in practice.

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Why companies split their stock

Stock splits might seem confusing to some, but they, of course, serve a purpose. When people hear the words stock split, they many times equate that with stock dilution, which investors don’t necessarily want to hear. While they don’t change a company’s fundamentals, they can influence how investors interact with the stock, especially when prices start climbing into triple or quadruple digits. Let’s look at why companies like Nvidia opt to split their shares, and what they’re hoping to achieve.

• Improve accessibility for retail investors
• Increase liquidity
• Signal confidence in future growth
• Fit into price constraints for index inclusion (in some cases)

The last time Nvidia split its stock was in 2024. In Nvidia’s case, the split was forward and dramatic: each shareholder received 10 shares for every 1 they owned, and the price per share was divided by 10.

The details of the 2024 NVDA stock split

Announced alongside a blowout earnings report, the NVDA split was part celebration, part strategy, and fully intended to capitalize on Nvidia’s momentum in the AI hardware space. As the stock soared past $1,100 in early May, many analysts speculated a split was imminent. The stock has become unaffordable for many lower-end retail investors and platforms, and thus a stock split was on the cards. Nvidia confirmed the rumors during its Q1 2024 earnings call on May 22, dropping the news that a 10-for-1 stock split would take place in early June.

Here’s a breakdown of the key dates and mechanics:

This is how it all worked and the mechanics are fairly straightforward: for every 1 share owned, shareholders received 9 additional shares, multiplying the total share count by 10. The stock’s price was adjusted downward to reflect the new structure. If you owned one share worth $1,100 on June 6, you woke up on June 10 with 10 shares priced around $110 each.

From a valuation standpoint, nothing changed. Nvidia’s market capitalization, which is the total value of all sahres, remained the exact same. This is the key principle of any stock split: it’s cosmetic in nature. But in a market that reacts as much to perception as it does to performance, the split had real effects.

Why a 10-for-1 stock split?

Nvidia didn’t go for a modest 2-for-1 or 4-for-1. Instead, they chose a bold 10-for-1 ratio, sending a strong signal to both retail investors and institutional players. The move made NVDA more accessible, especially to traders on platforms that don’t support fractional shares. It also lowered the cost of entry for options contracts, which are typically tied to 100-share lots. For long-term holders, the split served as a confidence booster, reinforcing Nvidia’s vision of continued growth and dominance in the AI sector.

It’s also worth noting the timing: Nvidia executed the split at a moment of peak strength. With revenue and net income surging (more on that below), and its AI chips essentially monopolizing the data center arms race, the split helped Nvidia cement its role as the crown jewel of the AI economy, while inviting a new generation of investors to the party.

What does it mean for investors?

At face value, a stock split is just arithmetic. But in a high-volatility, momentum-driven market like 2024, the effects go deeper. Nvidia’s 10-for-1 split didn’t alter its fundamentals, but it expanded access for investors, enabled new trading strategies, and boosted liquidity, impacting both short- and long-term market dynamics.

Retail accessibility

Retail investors were a key target of the split, and for good reason. With Nvidia trading above $1,000 pre-split, many individuals were priced out or hesitant to allocate so much to a single stock. While fractional shares help, not all platforms support them, especially for options or DRIPs. Dropping the price to around $100 made NVDA feel more accessible and psychologically like a better entry point.

Institutional activity

While often framed as a retail-friendly move, stock splits also benefit institutional investors. A larger share count increases liquidity, making it easier for funds to trade large blocks without moving the market. It also tightens bid-ask spreads and improves NVDA’s fit within ETFs, index funds, and models constrained by share price or weighting rules. For pension funds and structured products, the lower price point enhances portfolio flexibility and scalability.

Options trading

Options contracts tied to 100 shares become far more accessible post-split. Before, a single NVDA call could represent over $100,000 in exposure, which was too costly for many retail traders, to say the least. After the 10-for-1 split, the same contract costs closer to $10,000, with lower strike prices and premiums. This unlocks covered calls, spreads, and other strategies for a broader range of investors.

This accessibility can lead to a significant spike in options volume, which we’ve already started to see in NVDA’s open interest data. And while that volume can increase volatility, it also deepens liquidity, providing more pricing efficiency across the derivatives market.

Historical performance after splits

Stock splits don’t change a company’s intrinsic value, they just split it up into smaller slices. Your slice of the pie stays the same; it’s just cut into more pieces. But in practice, splits can trigger price momentum, often because they coincide with strong fundamentals, bullish sentiment, and increased accessibility.

Historically, NVDA has used splits as a way to reset the table after periods of explosive growth. The company isn’t in the habit of splitting just to generate buzz; its splits have typically followed major revenue acceleration, product breakthroughs, or dominant market moves (as we saw again in 2024).

Here’s how Nvidia’s stock has performed after past splits:

In each case, Nvidia saw positive returns not just immediately after the split, but across longer time frames, particularly over the following 6 and 12 months. This suggests that while the split itself might be a catalyst, it tends to be part of a broader rally tied to earnings strength, product adoption, or sector momentum (as we’re seeing with AI now).

It’s important to remember that correlation doesn’t imply causation. But for Nvidia, stock splits have historically happened during periods of high investor confidence, and they’ve often served as accelerants for further gains.

How the NVDA split fits into the AI gold rush

Remember, NVDA is at the absolute frontier of the AI gold rush, as they are building the infrastructure that facilitates AI with chips. Think of it like the real American gold rush in the second half of the 19th century; Nvidia is building the. train tracks and mining equipment to make this gold rush possible.  It came at a moment when Nvidia wasn’t just a chipmaker—it was the chipmaker, the linchpin of modern AI infrastructure. While much of the market was chasing AI startups and speculative plays, Nvidia was busy doing what every gold rush winner does: selling the shovels. And in this case, those shovels are ultra-powerful GPUs essential to training and deploying large language models and generative AI systems.

The market saw this, and the stock reflected it. In the 18 months leading up to the split, Nvidia’s stock price soared over 200%, riding the same AI-fueled optimism that reshaped the valuations of chipmakers, software vendors, and even cloud providers.

These aren’t incremental gains, they’re generational leaps. Nvidia’s FY2024 earnings showed what exponential demand looks like in real time, and the company used that moment to execute a strategic stock split. It wasn’t a gimmick, it was a statement. A way to say, “We’re just getting started,” while inviting a broader base of investors along for the ride.

That’s why the split was interpreted not as a cosmetic adjustment, but as a flag planted atop a financial mountain—a declaration that Nvidia is building the roads, the tools, and the rules of the AI economy.

Should you buy NVDA after the split?

Let’s be clear: a lower share price doesn’t mean a better value. But it does affect perception.

Comparing NVDA to other recent tech splits

Nvidia isn’t the only tech giant to split its stock in recent years, but its timing and context set it apart. Several of the world’s most valuable companies executed stock splits in the post-pandemic era, aiming to make their shares more accessible to retail investors while capitalizing on strong business performance or market sentiment.

Here’s how Nvidia stacks up against some of the most notable splits:

As the data shows, stock split outcomes vary. Apple rallied post-split in 2020, while Amazon dropped in 2022 amid broader economic pressures. Nvidia’s split looks more like Apple’s—driven by strong demand, pricing power, and dominance in a fast-growing AI sector. While splits don’t guarantee gains, when timed with strong fundamentals and market optimism, as with NVDA, they can amplify bullish sentiment and momentum.

FAQ

What happens to my existing NVDA shares after the split?

If you held Nvidia shares before the record date (June 6, 2024), your position was automatically adjusted on June 10. For every 1 share you owned, you now have 10, each worth approximately one-tenth of the pre-split price. The total value of your holdings remains unchanged.

Will Nvidia’s lower share price affect how it trades?

Yes, but not in terms of value. The lower share price increases liquidity, encourages higher trading volume, and makes the stock more accessible to retail and options traders. This can lead to increased volatility, especially in the short term.

Benjamin Locke

Benjamin writes about finance, real estate, business, economics and most things business or investment related, for publications such as The Motley Fool, SuperMoney, and Joy Wallet. Hailing from Denver, Colorado, he spent 15 years in East Asia heavily involved in both the financial services and real estate industries. He enjoys writing about all the interesting ways this great spinning ball that we call earth works; particularly when it comes to the intersection of business, trade, finance, and history. Read Full Bio