Posted 1/1/2024, 7:05:00 PM
Nvidia Soars Over 300% on AI Boom, Prompting Likely Stock Split to Keep Shares Affordable
- Nvidia stock surged over 300% in 2023 due to explosive growth in AI, making a stock split likely to keep shares affordable
- Nvidia has a history of stock splits, most recently in 2021 when shares were trading at $744 pre-split
- Stock splits don't change a company's value, only the share price by dividing it into more shares
- Nvidia is the top AI chip maker and analysts expect 42% annual earnings growth, making it a strong long-term buy
- Investors should buy Nvidia based on business growth prospects, not the possibility of a stock split