NVIDIA Announces 10-For-1 Stock Split, Increases Dividend

SANTA CLARA, CALIFORNIA, May 22, 2024 – NVIDIA Corporation (NASDAQ: NVDA) has announced a 10-for-1 forward stock split, effective June 7, 2024. The company also increased its quarterly cash dividend by 150% from $0.04 to $0.10 per share. This move is aimed at making the stock more accessible to a broader range of investors and employees.

The stock split was announced alongside NVIDIA's quarterly earnings report, which showed a significant rise in revenue and earnings per share. The company reported first-quarter revenue of $26.04 billion, a year-over-year increase of 262%. The company also expects second-quarter revenue to be approximately $28 billion, a 107% increase from the same period last year.

NVIDIA's decision to split its stock comes as the company continues to experience strong growth, largely driven by its role in the artificial intelligence (AI) boom. The company has become a key player in the AI revolution, with its processors powering a wide range of AI systems.

"NVIDIA has been at the forefront of the AI revolution, and this stock split is a testament to our continued growth and success," said Jensen Huang, co-founder and chief executive officer of NVIDIA. "We believe this move will make our stock more accessible to a wider range of investors and employees, further aligning their interests with the company's."

The stock split will be effective for shareholders of record as of June 7, 2024. Each shareholder will receive nine additional shares of common stock for each share held on the record date, to be distributed after the close of trading on June 10, 2024.

In addition to the stock split, NVIDIA has increased its quarterly cash dividend to $0.10 per share. This represents a 150% increase from the previous dividend of $0.04 per share. The dividend will be paid on July 1, 2024, to all shareholders of record as of June 15, 2024.

NVIDIA's stock closed at $949.50 on Wednesday, May 22, 2024. With the 10-for-1 stock split, each share would cost $94.95. However, an investor would need to buy 10 of them to own the same amount of the company as they currently do with one share.

The company's shares rose nearly 4% in after-hours trading on Wednesday following the announcement. NVIDIA's stock has soared 25-fold in the past five years, reflecting the company's strong performance and its central role in the AI boom.

NVIDIA's move follows similar actions by other tech giants. Alphabet, Amazon, and Tesla all announced stock splits in 2022. These splits are seen as a way to make the companies' stocks more accessible to a wider range of investors.

The company's stock split and increased dividend are part of a broader trend of tech companies using their strong financial performance to reward shareholders. As the AI revolution continues to drive growth in the tech sector, NVIDIA's move is likely to be closely watched by investors and industry observers alike.

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Travis

contributor

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