NVIDIA soars 3% day after it starts trading split-adjusted stocks

Summary

  • NVIDIA Corporation (NASDAQ: NVDA) declared a four-for-one stock split on May 3, 2021.
  • The stock split became effective on July 19 after the end of the business hours.
  • The split-adjusted stocks started trading on July 20, 2021.

NVIDIA Corporation (NASDAQ: NVDA) stock soared more than 3% a day after it started trading its four-for-one split-adjusted common shares on the exchange. It had declared the stock split on May 21. 

On Tuesday, the stock was up 3.39% to US$192.435 at 1:43 pm ET on July 21 from the previous close. NVIDIA shareholders had approved the amendment to increase the common stocks from 2 million to 4 million in their annual meeting on June 3, 2021. 

According to the arrangement, every stockholder on record at the close of June 21, 2021, would get three additional common stocks for each share held. These shares were distributed after the close of July 19, 2021, and the split-adjusted stocks started trading on Monday.

Source: Pixabay

Also Read: How do you find hyper-growth blue-chip stocks?

NVDA is a leading designer of Graphics Processing Unit (GPU) that enhances the computing experience. Its two segments are the Graphic segment and Computing and Networking segment. These segments provide streaming service and related infrastructure, gaming platforms, and systems for data center, AI, HPC, automotive AI Cockpit, autonomous vehicle solutions, and other embedded platforms.

It has a market capitalization of US$1.87 trillion, with a P/E ratio of 88.9. NVDA’s dividend yield is 0.09%, and the annualized dividend is US$0.64. In 1999, NVIDIA had introduced GPU, which along with AI, now works as computers’ brain, robots and self-driving vehicles that can understand the world around them. 

The company’s semiconductor chips are also used in various industries. Its pioneering works in accelerated computing and AI have changed gaming, transportation, healthcare, and manufacturing. 

Also Read: Are these 10 global technology companies poised to grow in FY21?

Its revenue for the first quarter ended May 02, 2021, was US$5.66 million, registering an 84% growth year-over-year. Its net income was US$1.9 million or US$3.03 per share diluted compared to US$917 thousand or US$1.47 per share diluted in Q1, 2020, reflecting a growth of 109% year-over-year.

NVDA’s forward P/E for one year is 56.91. The stock has been witnessing an increased trading volume for the last three days. The stock notched 79% in one year at the closing price of US$751.19 on July 19. 

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.


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