Investors who own Nvidia stock when trading closes Thursday afternoon will likely be affected by the chipmaker’s upcoming stock split.
The 10-for-one split was announced in late May, along with a dividend increase. The announcements were accompanied by strong first-quarter earnings results from the chip manufacturer and artificial intelligence developer.
The split will come a day after the tech giant overtook Apple to become the world’s second most valuable company.
Nvidia’s valuation surpassed $3 trillion on Wednesday, putting the company behind only Microsoft, which is valued at $3.14 trillion.
Here’s what you need to know about Nvidia’s stock split:
How Nvidia’s stock split works
Investors holding Nvidia stock at the end of the trading day on Thursday will receive nine additional shares of the stock after the end of the trading day on Friday. The value of the shares will be adjusted to reflect the split.
Trading on the split value price starts on Monday.
Nvidia dividend
Shareholders will receive a dividend of one cent per share at the end of the day on Tuesday, which the company will pay out on June 28.
Nvidia reaches $3 trillion after news of split, dividend and Tesla order
Nvidia crossed the $3 trillion threshold the day after Tesla CEO Elon Musk said on X, formerly known as Twitter and owned by Musk, that the electric car maker was likely spending between $3 and 4 billion on Nvidia hardware this year, accounting for about 30-40% of the company’s artificial intelligence spending this year, Musk said.
The revelation of Tesla’s order comes after Nvidia reported strong profits in the first quarter of the year.
The company reported a revenue increase of more than 260% compared to the first quarter of 2023, while data center revenue rose 427% year-over-year to $22.6 billion, an increase fueled in part by demand for generative AI training, the company said.
“The next industrial revolution has begun,” Nvidia founder and CEO Jensen Huang exclaimed in a May press release announcing first-quarter results. “Enterprises and countries are working with Nvidia to shift trillions of dollars’ worth of traditional data centers to accelerated computing and build a new type of data center – AI factories – to produce a new product: artificial intelligence.”
Nvidia stock price
Nvidia stock closed trading Wednesday at $1,224.40 per share.
If the stock had split Wednesday, it would have been valued at $122.44 per share. The ticker is up just under 29% between the stock split announcement in May and the close of trading Thursday.
This article originally appeared on USA TODAY: When is Nvidia’s stock split? Important dates to know ahead of the 10-to-1 split
