CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Nvidia stock split following share price rally as bull run continues

The Nvidia share price has spiked in recent days following confirmation of a stock split. Shares have gained 8% over the last seven days as the company’s 3 June Annual Meeting of Stockholders voted on the Nvidia stock split.

  • Nvidia share price up 8% in the last seven days.
  • Analysts bullish over Nvidia stock split.
  • Can artificial intelligence innovations help Nvidia shares maintain momentum?
  • Ready to trade the Nvidia share price? Open an account today

The Nvidia stock split was announced on 21 May. At the time, the Nvidia share price was just under $600, but it’s been on a bull run ever since. Shares opened at $702.50 on 7 June, 20% higher than their $585.50 valuation on 20 May, one day before the stock split announcement.

The stock split was officially proposed in the company’s Annual Meeting of Stockholders on 3 June. As per the presentation, Nvidia is seeking permission from shareholders to increase the number of shares of common stock from 2 billion to 4 billion.

The shareholder presentation states: ‘The Charter amendment will provide adequate shares of common stock to be used by the Board for general corporate purposes, including, but not limited to, expanding our business through mergers and acquisitions’.

Why has the Nvidia stock split sparked a bull run?

As well as creating more opportunities in the business market, the Nvidia stock split will help create ‘equity incentives’ for employees. The news has been received well by investors. Nvidia shares are up 84% over the last 12 months and SaltLight Capital Management continues to tip the American company as one to watch.

Indeed, as well as the first Nvidia stock split for two decades paving the way for mergers and acquisitions, the company’s position in the artificial intelligence (AI) space is appealing to analysts. At the heart of this optimism is the 2020 acquisition of Arm Technologies.

The $40 billion deal will, according to Nvidia’s recent shareholder meeting, combine the company’s ‘AI computing platform with Arm's vast ecosystem’. This has the potential to create a ‘premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets’.

What makes AI a lucrative opportunity?

The AI software market alone is expected to be worth $126 billion by 2025, according to data from Statista. Analysts believe Nvidia will be one of the companies at the forefront of this growth. That could sustain the Nvidia share price bull run over the next 12 months. However, in the short term, it’s the stock split that’s given the company a boost.

If the Nvidia stock split is approved, shareholders will receive three additional shares for every common stock they hold. This process is expected to take place at the close of trading on 19 July 2021. Nvidia will then start trading on a stock-split basis from 20 July 2021. This will be the point at which investors may start to see the true value of Nvidia shares. Although nothing is certain, the current trend is positive.

Will Nvidia shares continue to surge after the stock split?

Take your position on US shares for just a small initial deposit with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.1 You can also buy and take ownership of US shares commission-free with us.2

Whether you trade or invest, you’ll get access to pre-market and after-hours trading on 70 US stocks.

Open an account to get started.

1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

2 Deal three times or more in the previous month to qualify for our best rate.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.