NVIDIA Stock Surges Amid Speculation of Potential Stock Split

Introduction:

NVIDIA's (NASDAQ:NVDA) stock continues its red-hot streak, surging another 2.8% in early trading Friday and surpassing the $950 mark. With the stock up nearly 90% since the beginning of 2024 and almost 300% over the last year, investors are now speculating about the possibility of a stock split. In this blog post, we delve into the recent momentum of NVIDIA's stock and the discussions surrounding a potential stock split.

Key Points:

1. Impressive Momentum: NVIDIA's stock has seen remarkable growth, rising approximately 90% since the start of 2024 and nearly 300% over the past year, driven by the ongoing AI boom and strong market performance.

2. Speculation of Stock Split: Analysts and investors are now speculating about the possibility of NVIDIA announcing a stock split, with some suggesting it could happen within the next year. Ken Mahoney, president and CEO of Mahoney Asset Management, believes a stock split could make NVIDIA's shares more accessible to small retail investors.

3. Previous Stock Split: NVIDIA previously announced a four-for-one stock split in May 2021 when shares were around $600. The decision aimed to make stock ownership more accessible to investors and employees. With the stock now nearing the $1,000 mark, discussions about another split have resurfaced.

4. Analyst Insights: Mizuho analysts recently raised their price target on NVIDIA to $1,000, emphasizing the company's strong position as a near-term AI winner. They anticipate continued strength in NVIDIA's AI business, projecting significant growth in data center revenues by 2027.

Conclusion:

As NVIDIA's stock continues to soar and discussions about a potential stock split gain traction, investors are closely monitoring the company's next moves. A stock split could make NVIDIA's shares more accessible to a broader range of investors, potentially fueling further growth in its already impressive market performance.