- What impact will the 2024 Nvidia stock split have on the value of NVDA going forward, given the continued demand in the AI industry?
Nvidia stock splits have occurred several times in the last few years. We believe that the Nvidia stock splits have the potential to amplify the long-term upside potential of the NVDA stock.
NVIDIA remains the most dominant AI stock in the market today. It continues to hold an upside bias as demand for computing infrastructure to power the AI revolution surges. While this demand will continue to play a role in the stock’s short-term price action, Nvidia’s stock splits have expanded the company’s outstanding share count and made it more accessible to investors by lowering the price. All these have occurred without degrading the company’s intrinsic value.
NVIDIA Stock Split History: Why Does it Matter?
There have been several Nvidia stock splits since 2000. The June 2024 Nvidia stock split was the most recent, allocating 10 new shares for every one previous NVDA stock held at the close of the register. NVIDIA stock splits have also occurred on the following dates:
- June 27, 2000: 2-for-1 stock split
- September 12, 2001: 2-for-1 split
- April 7, 2006: 2-for-1 stock split
- September 11, 2007: 3-for-2 stock split
- July 20, 2021: 4-for-1 stock split
Stock splits, especially for stocks where such extra share issuance does not reduce the company’s intrinsic value, can be used to build wealth over time through compounding. For instance, if an investor had purchased a single NVDA share before the June 27, 2000, stock split, they would have collected 480 shares of the stock, without any extra purchases. Considering that NVDA traded at $0.29 as of the first stock split and now trades at $187.67, that investor would have benefited not just from the number of shares but also from price appreciation.
The 2024 Nvidia Stock Split
NVIDIA issued 10 new shares for every share previously held on 7 June 2024. The split-adjusted stock resumed trading on 10 June 2024. This stock split delivered the following:
- The share price dropped without a drop in the stock’s value. This made it more affordable to retail investors.
- Liquidity tightened, and trading depth improved as the stock became more active in the options market.
- The stock became more tradable per unit, thereby increasing index visibility.
Increased accessibility led to greater participation from around the world and, ultimately, to the stock becoming one of the most capitalized in the US stock market.
NVDA Macro Drivers
Post-split, AI capex momentum and the rollout of GPU infrastructure remain the key drivers of Nvidia’s stock price.
1. AI Capex Spending
AI infrastructure spending continues to drive sentiment in Nvidia stocks. This is because the company is considered the leading brand for AI computing. NVIDIA’s new Blackwell platform is designed to provide enhanced AI computing functionality. Demand for this platform has continued to break records, as it can support large language models and agentic AI at scales beyond what is currently available in the market. It is the product expected to take Nvidia from a simple chipmaker to a provider of a fully integrated AI server suite.
2. Risk sentiment
NVIDIA’s exposure to the Chinese market and its listing on the risk-sensitive Nasdaq index make it a mega-cap stock that is risk-sensitive. With US export policy regarding microchips continuing to evolve, NVDA remains sensitive to risk-on/risk-off scenarios.
3. Competition
Competition is emerging from new players in the AI market. Rival GPU platforms and hyperscalar custom silicon products from Google, American Micron Devices (AMD), Meta, and Microsoft are expected to become emerging challengers to Nvidia’s market dominance in 2026.
Nvidia Technical Outlook
NVIDIA is in a clear uptrend, coming off the 2025 lows. Following a pullback from the impulse move that topped at 212.74, the stock is now in consolidation between the 172.75 price mark (50% Fibonacci retracement of the 30 May – 28 October 2025 swing) and the 196.30 resistance (10 October and 20 November highs).
A break of the latter exposes the 29 October 2025 high at 212.74. Above this, a new record high beckons at the 27% Fibonacci extension level at 233.49.
On the other hand, a breakdown of 172.75 ushers in a leg lower to the 5 September 2025 low at 163.44. Below this level, 154.12 is the next downside target for the bears.