What was the price of Nvidia stock before split?
Some see the AI giant well placed to do so again. The company last announced a four-for-one stock split in May 2021, when it was trading at about $600 per share.
The latest was in 2021, when it did a 4-for-1 split. The stock traded for around a pre-split price of $744 -- cheaper than it is today. Before that, Nvidia last split its stock in 2007, when it would have traded at a split-adjusted price of just over $50.
Nvidia has been a rockstar of a stock because of its ties to artificial intelligence (AI). Its primary product, graphics processing units (GPUs), are an integral part of training AI models due to their ability to compute in parallel.
With a high stock price, good momentum and an optimistic outlook, Nvidia is poised for a stock split in 2024.
Nvidia (NVDA) is currently pulling back, but this is an opportunity to buy, rather than a warning to sell. Despite slipping shares, recent announcements strengthen the bull case. NVDA stock pullback won't last, and two factors suggest shares will exceed $1000.
Nvidia Corp.'s scorching rally has added more than $1 trillion in value this year alone, sending it well above the level where it last split its shares. Some see the AI giant well placed to do so again. The company last announced a four-for-one stock split in May 2021, when it was trading at about $600 per share.
- The all-time high NVIDIA stock closing price was 950.02 on March 25, 2024.
- The NVIDIA 52-week high stock price is 974.00, which is 17.9% above the current share price.
- The NVIDIA 52-week low stock price is 270.71, which is 67.2% below the current share price.
In 2024, Nvidia's stock has continued to hit new heights, with its share price up 76% since the market closed out 2023. The tech giant remains on a promising growth trajectory, with its business likely to benefit from the tailwinds of AI and other tech sectors for years.
In fact, it may still represent good value. Nvidia currently trades at 35.4x forward earnings, making it more expensive than the S&P 500 (SPX), but it's by no means too expensive for the tech sector. Moreover, the company is expected to continue delivering stellar growth throughout the medium term.
The bullish case for Nvidia
According to a recent forecast from Gartner, the global market for AI chips will soar to $119.4 billion by 2027, which is more than double what it was worth in 2023. Nvidia, being a dominant player in the industry and a provider of AI chips, stands to benefit from this growth.
Is it better to buy before or after a stock split?
Does it matter to buy before or after a stock split? If you buy a stock before it splits, you'll pay more per share than what it'll cost after it splits. If you're looking to buy into a stock at a cheaper price, you may want to wait until after the stock split.
Assuming Nvidia is still trading at the same forward P/E, its stock price could reach $3,360 by the end of 2030, or 328% above the current share price. That would put its market cap at over $8 trillion.
Nvidia (NASDAQ: NVDA) is a prime example of what a successful buy-and-hold investment can deliver over the long run. An investor who put $10,000 into Nvidia stock a decade ago and held on would be sitting on a position worth more than $1.8 million right now and more than $1.9 million with dividends reinvested.
After rising over 1,000% in the last five years to a market cap greater than $2 trillion, Nvidia has made millions of dollars for investors who held for the long term.
Comparatively, its adjusted earnings per share are forecast to touch $115 by the end of fiscal 2028. If Nvidia stock is priced at 25x forward earnings, its shares should be priced at $2,875 in the next four years, indicating an upside potential of 300% from current levels.
However, for Nvidia to get to $2,000, the company would have to continue to grow its revenue at the same pace as it has, which will likely not happen any time soon, given its slowing growth guidance.
| Average Recommendation | Buy |
|---|---|
| Average Target Price | 989.01 |
| Number Of Ratings | 60 |
| FY Report Date | 1/2025 |
| Last Quarter's Earnings | 5.16 |
Evident in Nvidia's microscopic dividend yield is the company's focus on reinvesting its profits to drive growth and retain cash, rather than distributing cash directly to shareholders. Investors need to understand that, currently, dividends are not Nvidia's primary focus.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 1,564.76 | 80.23% |
| 2026 | $ 2,820.18 | 224.83% |
| 2027 | $ 5,082.82 | 485.44% |
| 2028 | $ 9,160.79 | 955.15% |
If it maintains those valuations, meets analysts' expectations, and still trades at 35 times forward earnings by the beginning of fiscal 2027 (which starts in Jan. 2026), its stock might be worth $1,085 per share with a market cap of about $2.7 trillion by late 2025.
Who are the top investors in NVIDIA?
The top individual shareholders of Nvidia are Jen-Hsun ("Jensen") Huang, Colette M. Kress, and Mark A. Stevens, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc. (BLK), and FMR LLC.
NVDA on Friday leapt 6.2% to 877.35 as it rebounded back above its 50-day moving average. The move put Nvidia (NVDA) just above a trendline, offering a potential early entry. The pattern has an official buy point of 974.
Huawei developed the Ascend series of chips as a rival to Nvidia's line of AI chips. The Chinese company's main product, the 910B chip, is its main rival to Nvidia's A100 chip, which launched roughly three years ago. Analysts have estimated China's AI chip market to be worth $7 billion.
Will Nvidia Stock Keep Going Up in 2024? Looking at Nvidia's consensus target price of $675.52, it seems that Wall Street does not expect the stock to rise any higher. However, the Street-high target price of $1,100 implies that the stock has still room to keep running.
But NVIDIA isn't in a bubble! The company's share prices aren't gathering momentum based on speculation but due to strong fundamental factors. The unquenchable demand for AI models is here to stay since it is a major driving force behind productivity gains across multiple industries.
