Every time Nvidia’s share price starts to rise into the four-digit range, a certain electricity is generated around the company. Long before management speaks, traders begin to discuss a split. It took place prior to the 2021 4-for-1 split. In June 2024, it occurred once more prior to the 10-for-1 split. And now the speculation has returned following yet another spectacular rally driven by AI.
Over the last two years, Nvidia’s explosive growth has felt almost like a movie. Between early 2023 and mid-2024, shares increased by about 700%, surpassing $1,000 before the firm broke the price down into more manageable chunks. For retail investors who favor entire shares over fractional ones, that 10-for-1 split on June 10, 2024, lowered the trading price to about $120–$125.
| Category | Details |
|---|---|
| Company | NVIDIA Corporation |
| Ticker | NVDA |
| Industry | Semiconductors / AI Hardware |
| Founded | 1993 |
| CEO | Jensen Huang |
| Most Recent Stock Split | 10-for-1 (June 10, 2024) |
| Previous Splits | 2021 (4-for-1), 2007 (3-for-2), 2006 (2-for-1), 2001 (2-for-1), 2000 (2-for-1) |
| Core Growth Driver | AI Data Center GPUs (H100, Blackwell) |
| Official Website | https://www.nvidia.com |
In lower Manhattan last summer, screens flashed green with NVDA tickers blazing upward as you passed trading desks. It felt like a momentous moment was about to happen. It wasn’t just a chipmaker that investors were purchasing. They were purchasing the foundation of the AI age, which included Blackwell chips that promised even more processing power and H100 accelerators that were humming within data centers.
Naturally, stock splits don’t fundamentally alter anything. Just cut the pie into more pieces. However, psychology is important. Members of the so-called Magnificent Seven, including Apple, Tesla, and Amazon, have used splits to rekindle interest. That pattern fits Nvidia well. Accessibility generates momentum, and narrative is fueled by momentum. But history warns us to be careful.
Following Nvidia’s 4-for-1 split in July 2021, shares had a quick spike before going through a period of volatility. The stock had dropped precipitously by 2022 as a result of tighter monetary policy and a decline in gaming demand. Prior splits in 2000 and 2007 followed a similar pattern: robust runs followed by turbulence, frequently in tandem with more general economic downturns.
Nvidia’s stock splits might serve more as markers—indications that a cycle might be coming to an end—than as catalysts. Four of Nvidia’s five previous splits happened within 12 to 24 months of a recession, according to a 2024 analysis. The pattern raises questions, but correlation is not fate.
This cycle feels different, though. Wall Street uses that term excessively, but in Nvidia’s case, the business mix has changed. Previous booms were mostly driven by the demand for gaming GPUs and, for a short time, cryptocurrency mining. These days, AI data centers are the driving force. Tens of billions are being spent by hyperscalers to construct infrastructure that can operate and train huge language models.
It becomes evident that AI is more than just software when you stand outside one of those enormous data centers in Northern Virginia, with rows of cooling towers buzzing and diesel generators arranged like silent sentinels. It is silicon, steel, and concrete. At the heart of that buildout is Nvidia.
Investors appear to think that there will always be a need for inference, the ongoing processing that drives AI bots. The need for significantly more computation per task for next-generation reasoning models has been underlined by Jensen Huang on numerous occasions. Nvidia’s revenue runway may extend well beyond what previous cycles have provided if that turns out to be the case.
Nevertheless, instability always appears, even during times of victory. Nvidia saw a more than 30% increase following the announcement of the 10-for-1 split in May 2024. Then came periods of cooling as economic uncertainty and profit-taking returned. A sugar rush is frequently produced by splits. What occurs months later is the true question.
It seems like retail participation is more important now. Smaller clients are encouraged to rejoin the company by a cheaper share price, even if it is only cosmetic. Message boards come to life. Activity in options surges. However, supply restrictions, competitive threats, and future profitability are important to institutional investors, who are responsible for allocating billions.
Competition is also rising. AMD keeps improving its GPUs for data centers. Hyperscalers’ custom silicon poses a threat to Nvidia’s hegemony. Authorities are keeping a tight eye on things, particularly as AI infrastructure gains strategic significance.
History indicates that the first emotion might be euphoria if another split were to occur following this most recent spike. Charts may rise. Accessibility would be praised in headlines. Prior to longer-term patterns resurfacing, historical performance suggests consolidation or even pullbacks.
It’s difficult not to feel both excitement and fragility as you see this play out. The rise of Nvidia has been astounding, changing retirement funds and portfolios alike. However, the market doesn’t always move in a straight line. Earnings support stories, but splits magnify them.
Is there going to be another split of Nvidia’s stock? Whether management believes the price has increased to the point where another division is necessary is still up in the air. History does indicate that splits do not protect against volatility, even though they create noise. The need for AI computing—and whether or not it continues to grow—remains the true motivator.
For the time being, traders continue to refresh their screens, the servers continue to hum, and the GPUs continue to ship. Nvidia’s future, split or not, depends on whether the AI revolution continues to support its exorbitant value. This is the simpler reality that lurks beneath the growing split rumors.
