Shares of Nvidia (SYM: NVDA) now trade at a tenth of its current price tag.
All after Nvidia split its shares 10:1 – its second split in 10 years – on Friday June 7. It’ll make one of the most sought-after stocks far cheaper for retail investors. Post-split, we don’t expect for the stock to stay down for long. In fact, with the artificial intelligence boom and powerful earnings fueling momentum, NVDA could easily run right back to $1,000 in a few months.
According to Bank of America analysts, stock splits are typically bullish for companies that enact them. On average, returns one-year post-split are 25%, compared to around 12% for the broader market, as noted by Investing.com.
Plus, NVDA earnings have been explosive with adjusted EPS coming in at $5.16, compared to expectations for $4.64.
Revenue of $22.1 billion also exceeded expectations of $20.62 billion. For its current quarter, the company expects to see sales of $24 billion as compared to estimates of $22.2 billion. That’s up significantly from the $7.19 billion in sales posted a year earlier.
