Nvidia's decision to split its stock in June 2024 increased accessibility for retail investors, following a significant rise in stock price to over $1,150. The split came after remarkable performance, with a market capitalization nearing $3 trillion and a revenue increase of 262% to $26 billion in Q1 fiscal 2025. Although the stock has shown some upward movement post-split, the market is currently focused on the upcoming earnings report due on February 26th to assess future pricing. Speculation continues about a potential second split based on performance expectations.
The split was mostly due to the company delivering exceptional performance as its market cap neared $3 trillion back then, and revenue had increased 262% to $26 billion in Q1 fiscal 2025.
Stargate has been announced, so it is likely that Nvidia will keep some of its upward momentum until earnings. If management is really looking to bump up the share price, it may even do another stock split.
Nvidia has proven its naysayers wrong. It has continued to grow with more and more momentum. However, the stock price has been more muted, allowing the company's fundamentals to catch up.
The market seems to be waiting for Nvidia's next earnings report on February 26th to decide whether it is worth paying more for.
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