Nvidia’s 2024 stock split reduced its share price by a factor of ten without changing its market capitalization.
Nvidia completed a ten-for-one stock split in June 2024. Each shareholder received nine additional shares for every share held, while the per-share price was divided by ten. The total market value of the company was not changed by the split alone.
Stock splits are accounting adjustments to the number of shares and their price, not direct changes to a company’s underlying business value. Companies sometimes use splits to make individual shares appear more affordable to investors, even though the proportional ownership remains the same.
Nvidia used the split during a period of extraordinary growth in demand for AI computing. Its chips, networking products, and software supported data centers operated by major technology companies. The split should therefore not be confused with a tenfold increase in Nvidia’s market capitalization.