Graphics and artificial intelligence company Nvidia announced a 10-for-one stock split as part of its first quarter earnings release on Wednesday.
The company reported a revenue increase of over 260% compared to the first quarter of 2023, with data center revenue soaring 427% to $22.6 billion. This growth was driven in part by the rising demand for generative AI training, according to Nvidia.
“The next industrial revolution is underway,” stated Jensen Huang, Nvidia founder and CEO, in a press release. “Businesses and nations are collaborating with Nvidia to transform traditional trillion-dollar data centers into accelerated computing hubs and create a new class of data centers − AI factories − to generate a new commodity: artificial intelligence.”
Nvidia stock split to take effect in June
Investors holding Nvidia stock after market close on June 6 will receive nine additional shares for each share owned after market close on June 7. These shares will split on a 10-to-one basis, with trading on the split basis commencing on June 10.
The Silicon Valley-based company also announced a one-cent per share dividend based on post-split holdings, payable on June 28. Shareholders must own shares after market close on June 11 to be eligible for the dividend.
Nvidia stock price
The tech giant’s stock price surged following the earnings release.
Nvidia closed the trading day at $949.50 per share and was trading around $1,007 per share in after-hours trading.
This activity puts the stock on the verge of surpassing its one-year closing high of $950.02, which could be eclipsed on Thursday.
What does Nvidia do?
Nvidia, founded in 1993, is a full-stack computing company.
Its artificial intelligence clients include ChatGPT, Amazon, Snap, and Google, according to a brief provided by the company.
The company also produces graphics cards that are essential for modern gaming.
