Acquiring shares of chipmaker Nvidia will be a lot easier in the future. The company announced a 10-for-1 forward stock split on Wednesday, which will come into effect on June 10.
Nvidia made the announcement while also reporting its quarterly earnings, which once again beat analyst expectations. The company’s revenue came at $26.04 billion, beating estimates of $24.65 billion and marking a 262% increase compared to the same period last year. Its adjusted earnings per share came at $6.12, an increase of 461% compared to the first quarter of 2023 and significantly higher than the $5.65 per share expected by analysts.
Jensen Huang, founder and CEO of NVIDIA, attributed the company’s success to the ongoing Artificial Intelligence boom.
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” Huang said in a press release. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient while expanding revenue opportunities.”
Nvidia’s stock rose more than 6% in the after-hours market, trading at $1,009.10 per share compared to the $949.50 close price on Wednesday. The shares are currently almost 100% up year-to-date.
With the price of its stock surging, the company decided to initiate a forward stock split in its common stock in an effort to “make stock ownership more accessible to employees and investors.” After the stock split, shareholders will receive nine additional shares of common stock for every common stock they own.