If one share in investors’ hands becomes 480 shares, is now the entry opportunity before Nvidia’s next stock split?

NVIDIA’s stock has performed strongly since its IPO, and it has conducted multiple stock splits to keep shares liquid in the market. With the global demand for AI infrastructure continuing to expand, Wall Street analysts are closely watching whether the company will launch another split plan.

NVIDIA’s historic split record and its long-term impact on shareholding structure

Looking back, since NVIDIA’s IPO in 1999, the company has repeatedly adjusted its per-share price through stock splits (Stock Split). After the first “1-for-2” split in 2000, there were subsequent actions in 2001, 2006, 2007, 2021, and 2024. From a long-term investment perspective, an investor who held one NVIDIA share before 2000 would, after multiple splits, have their holdings converted to 480 shares. This split strategy not only lowers the entry threshold for new retail investors, but also ensures share liquidity in capital markets. NVIDIA’s 10-for-1 split in 2024 adjusted the share price from about $1,200 down to the $120 level, demonstrating the management’s proactive efforts to adjust the stock price and keep market enthusiasm active.

AI infrastructure demand supports stock price growth momentum

NVIDIA’s leading position in GPUs makes it the core supplier for upgrades to global data center infrastructure. According to observations of market trends from The Motley Fool, over the next few years the industry is expected to invest more than $7 trillion in building AI data centers. Because these hardware infrastructure projects are highly dependent on the compute chips provided by NVIDIA, the company’s business growth momentum remains strong. Starting at the beginning of this year, the stock has shown a stable upward trend. Analysts expect that with the widespread adoption of AI technology applications, NVIDIA’s revenue and profits will continue to be reflected in its share price performance, also setting the foundation for a potential next stock split.

To predict the timing of NVIDIA’s next stock split, it must refer to the decision thresholds NVIDIA used in the past. In the early days, NVIDIA tended to make adjustments when the stock price was in the $20 to $50 range, but in recent years the strategy has shifted. The “1-for-4” split in 2021 happened when the stock price was around $750, while the 2024 split was initiated after the stock climbed to the $1,200 mark. At present, NVIDIA’s share price is fluctuating around the $200 level. Analysts believe that although it is above the thresholds for earlier splits, compared with the trigger points of the two recent large-scale splits, it may need to rise to the growth level seen over the past five years before a further split is possible.

NVIDIA’s current market capitalization is approaching $5 trillion, and it has become an extremely important weighted target in global capital markets. With such a massive market-cap scale, any adjustment to capital structure must be calculated with extreme precision. Although there is huge room for growth, a stock split is not a necessary operational priority; rather, it is a tool to maintain market participation. Taking into account the current market pricing and liquidity situation, today’s price seems to present a new entry opportunity. The Motley Fool analysts believe that the timing of the next split will depend on whether the stock can keep its growth momentum. As of the time of this publication, NVIDIA’s share price has remained in the range of $198 per share, and so far this year it has shown steady growth. Pure market observation, not investment advice.

This article: For investors, 1 share becomes 480 shares—so is the entry opportunity before NVIDIA’s next wave of stock splits now? First appeared on Chain News ABMedia.