Nvidia's highly anticipated 10-for-1 stock split officially took effect on Monday, granting investors a significant boost by providing them with nine additional shares for every one they previously held. This move comes as Nvidia's stock price has surged, more than doubling in value this year and tripling in 2023, propelling the company to become the third most valuable entity in the S&P 500 index. Last week, Nvidia briefly surpassed Apple to claim the title of the second most valuable company in the United States, with a market value exceeding $3 trillion.
The soaring demand for Nvidia's semiconductors, crucial components for powering artificial intelligence applications, has been a key driver behind the company's remarkable financial performance. In the latest quarter, Nvidia's revenue skyrocketed, more than tripling compared to the same period a year ago.
Nvidia has solidified its position as a major player in the field of artificial intelligence, boasting impressive figures such as a total market value exceeding $3 trillion as of Wednesday. Just two years ago, the company's value stood at around $418 billion, highlighting the remarkable growth it has experienced in a relatively short period.
Following the stock split, Nvidia's shares closed at $1,224.40 on Wednesday, making it one of only 11 companies in the S&P 500 with a share price exceeding $1,000. Post-split, the stock will open at $120.89 on Monday, making it more accessible to a broader range of investors.
In its most recent fiscal quarter, Nvidia reported a staggering revenue of $26 billion, a substantial increase from the $7.2 billion recorded in the same period a year earlier. Analysts are optimistic about Nvidia's future prospects, with Wall Street projecting revenue of $117 billion for fiscal 2025, nearly double the figure for 2024 and more than four times the revenue from the preceding year.
Notably, Nvidia boasts an estimated net margin of 53.4%, indicating that over half of its revenue translates into profit. In comparison, Apple's net margin was 26.3% in its latest quarter, while Microsoft's stood at 36.4%. Despite the lower net margin percentages, both Apple and Microsoft generate significantly higher revenue than Nvidia.
