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Business

Time: 2024-05-23

NVIDIA to Announce Stock Split Soon: 3 Key Reasons to Consider

NVIDIA to Announce Stock Split Soon: 3 Key Reasons to Consider
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Tomorrow, NVIDIA (NASDAQ:NVDA) is gearing up to release its first-quarter earnings, with analysts predicting revenue of $24.59 billion and earnings per share of $5.58. With the stock hovering near the $1000 mark, there is anticipation for a potential surge in share price post-announcement.

Analysts are bullish on NVIDIA's earnings, especially with the anticipation of sales deals for their new Blackwell chips. The company's reported plans to produce a significant number of NVL72 AI servers could result in a substantial revenue increase by 2025.

Looking at NVIDIA's stock split history, the company has split its stock five times in the past, with the most recent being a 4:1 split in July 2021. This move made shares more accessible to investors and led to a significant price increase before the split.

Stock splits do not inherently add value, but they do make shares more affordable and can increase investor interest. Lower share prices also provide flexibility for management and could potentially lead to inclusion in major indices. All eyes will be on NVIDIA's earnings announcement, with the possibility of a stock split looming if demand forecasts for 2025 are positive.

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