--- title: Nvidia, the Hottest Stock of the Year, Is About to Get 90% Cheaper description: Nvidia, the third-largest company by market cap, will have its stock split June 7. Here's what to know about the 10-to-1 Nvidia stock split. authors: - name: Jordan Chussler role: Editor, Investing and Banking url: https://money.com/author/jordan-chussler/ bio: Jordan is an investment editor and CPFC who specializes in traditional equities, gold and other precious metals, retirement savings and income investing. He combines his personal and professional interests in finance and education to help readers increase their financial literacy and make better investment choices. education: Lynn University certifications: Certified Personal Finance Counselor at_money_since: 2023 articles: 130 covers: - Investing - Banking - Credit - Credit Cards - Economy and Politics - Housing - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement also_seen_in: - Weiss Ratings - 24/7 Wall Street - Better Investing - Yahoo Finance - Nasdaq - Investing.com - Marketbeat - MSN Money social: - https://www.linkedin.com/in/jordan-chussler-b3597811/ editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-06-05T17:57:03.000Z' modified: '2024-06-06T13:45:43.000Z' section: Investing word_count: 792 canonical: https://money.com/nvidia-stock-split-time-to-invest/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Hand holding phone with 'Nvidia' on the screen](https://img.money.com/2024/06/News-Nvidia-Stock-Split.jpg) This year's hottest stock is about to become 90% cheaper. After the markets close on Friday, June 7, shares of Nvidia will undergo a 10-for-1 stock split. The tech company announced the split during its first-quarter earnings call, stating the goal is "to make stock ownership more accessible to employees and investors." Nvidia, which manufactures graphic processing units, application programming interfaces and high-performance microchips, has seen shares gain 1,843% since the start of 2020 on the back of an AI-fueled surge in demand for its products. According to its website, more than 40,000 companies now use Nvidia's AI technologies. In 2023, it joined the trillion-dollar valuation club, and in this year, it surpassed [Apple](https://money.com/how-to-buy-apple-stock/) to become the second-largest company by market cap ($3.01 trillion) trailing only Microsoft ($3.15 trillion). ## Invest as little or as much as you want with a Robinhood portfolio ### With Robinhood, you can build a balanced portfolio and trade stocks, ETFs and options as frequently as you want, commission-free. Click your state to start investing today! [Start Investing](https://money.com/pr/r31b8d158d2e?ap_referrer=%2Fnvidia-stock-split-time-to-invest%2F) ## What the Nvidia stock split means Inherently, a stock split doesn't make shares of a company any more or less valuable, nor do they increase or decrease a company's market cap. "Deciphering a stock's short-term movement is up for debate on what is driving it," says Chris Barto, investment analyst at Fort Pitt Capital Group. "Stock splits do not change anything fundamental." Whereas share dilution is the act of a company issuing additional stock to raise capital, which in turn reduces shareholders' value, stock splits have a singular aim: to make shares affordable for more investors. Stock splits reduce the price per share in direct proportion to the increase in shares. In Nvidia's 10-for-1 case, current shareholders will receive nine additional shares for every one share they own, with the company's outstanding shares increasing tenfold. Pre-split, the stock is trading around $1,198 per share — an asking price that's prohibitively expensive to many retail investors. But the June 7 stock split changes that, making shares of the [Magnificent Seven](https://money.com/faang-magnificent-seven-tech-stocks/) stock accessible to the broad investing community. The expectation is that, when the split occurs this Friday, shares will be trading for around $119.80 based on its current market price. ## Invest and trade in real time with Robinhood ### Robinhood makes investing in financial markets more affordable, more intuitive, and more fun, no matter how much experience you have. Click below to start investing today! [Start Investing](https://money.com/pr/fc4ee174c128?ap_referrer=%2Fnvidia-stock-split-time-to-invest%2F) ## Should you buy Nvidia stock? Importantly, investors shouldn't expect the stock split to act as a catalyst for further gains. According to financial services group Hartford Funds, "Stock splits have no tangible impact on a company’s total value — they simply create more shares at more affordable prices." As a result, "investors shouldn’t buy a stock simply because they hope it’ll rise in price after a split. Over the long term, a company’s value is determined by its earnings, not its stock price." For Nvidia, its recent earnings history indicates substantial future growth potential. The company's earnings per share (EPS) have exceeded analysts' forecasts every quarter since its last miss on Nov. 16, 2022, while seeing exponential growth from 88 cents in the first quarter of 2023 to $6.12 in the second quarter of 2024 — a gain of 595%. The consensus EPS forecast for the third quarter of 2024 is $6.38. However, earnings are based on past performance and aren't indicative of future growth. "Earnings and growth have been supportive of Nvidia’s valuation; however, the difficult part moving forward is the sustainability of these earnings and growth of the company," Barto says. "There are the rising risks of competition, pricing and customers who may decide to pull back on \[capital expenditures\] ... Nvidia is not the only company benefiting from the artificial intelligence trend." Investors shouldn't use the split as a cue to buy Nvidia stock — or to sell it, for that matter. If it makes sense for your portfolio, buying shares of a company as fundamentally strong as Nvidia is fine. But it's unwise to make that decision based on this week's stock split news. Or consider a safer approach: Purchasing shares of [index funds](https://money.com/best-index-funds/) with heavy allocations to the chipmaker or buying [fractional shares](https://money.com/stocks-fractional-shares/) (if [brokerages](https://money.com/best-stock-apps/) offer them) would provide an alternate means of gaining exposure to Nvidia's growth potential. ## More stock splits to come In any event, Nvidia hopes to join Walmart as 2024's next stock split success story. On Feb. 26, the multinational retail corporation had its first stock split in over 20 years. Following the 3-for-1 split, shares have gained 12% in large part due to strong second-quarter earnings. Walmart shares reached their all-time high of $181.35 on Feb. 20. At the time of writing, the stock is trading around $66.74. Two other big-name companies splitting their stock this month are Canadian Natural Resources (2-for-1 on June 11, 2024) and Chipotle (50-for-1 on June 26), the latter of which hit its all-time high of $3,239.23 per share on May 10, 2024. ## Investing made easy - Get mobile access to the markets and choose how much you want to invest ### Robinhood allows you to invest commission-free in individual companies or bundles of investments (ETFs). [Start Investing](https://money.com/pr/u5d0d8480761?ap_referrer=%2Fnvidia-stock-split-time-to-invest%2F) ![](https://s3.consumersadvocate.org/prd/image/image/16291/medium_00c49a6e-a3eb-40b2-b805-13b4258cd431.png) Become a better investor with Robinhood [INVEST TODAY](https://money.com/pr/w589e9f64e7d?ap_referrer=%2Fnvidia-stock-split-time-to-invest%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/nvidia-stock-split-time-to-invest/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Stocks", "item": "https://money.com/stocks/" }, { "@type": "ListItem", "position": 4, "name": "Nvidia, the Hottest Stock of the Year, Is About to Get 90% Cheaper" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/nvidia-stock-split-time-to-invest/#webpage", "url": "https://money.com/nvidia-stock-split-time-to-invest/", "name": "Nvidia, the Hottest Stock of the Year, Is About to Get 90% Cheaper", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-06-05T17:57:03.000Z", "mainEntity": { "@id": "https://money.com/nvidia-stock-split-time-to-invest/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/nvidia-stock-split-time-to-invest/#breadcrumb" }, "dateModified": "2024-06-06T13:45:43.000Z" }, { "@type": "Article", "headline": "Nvidia, the Hottest Stock of the Year, Is About to Get 90% Cheaper", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/06/News-Nvidia-Stock-Split.jpg", "width": 2880, "height": 1920, "caption": "News-Nvidia-Stock-Split" } ], "author": [ { "@type": "Person", "name": "Jordan Chussler", "url": "https://money.com/author/jordan-chussler/", "@id": "https://money.com/author/jordan-chussler/#author", "description": "Jordan is an investment editor and CPFC who specializes in traditional equities, gold and other precious metals, retirement savings and income investing. 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