Nvidia (NVDA) – Get Report rose higher Tuesday as shares in the most popular chipmaker in the market will begin trading on a split basis after a spring decision to make them more accessible to individual investors and corporate employees.
Nvidia told investors in late May that it would implement a four-for-one stock split beginning July 20, a plan in which record shareholders took a “dividend” of three additional shares on June 21 after the close of trading last night. Essentially, this would change the makeup of an investor’s holdings from one share at $750 each to four at $187.80 each, but the market value of the Santa Clara, California-based chipmaker remains around $117 billion. .
Nvidia shares were 1.17% higher than their split-adjusted close in pre-market trading Tuesday to indicate an opening bell price of $190.00 apiece.
Nvidia shares are up about 53% so far this year, thanks in part to market share gains in gaming and cryptocurrency mining and continued advances in artificial intelligence and data center chips. Intel (INTC) – Get Report In comparison, stocks are up just 9.7% so far this year, while Advance Micro Devices (AMD) – Get Report is down 5.6% and Micron Technology (MU) – Get Report decreases by 0.8%.
Earlier this spring, Nvidia said revenues from chips used for gaming, which make up about half of the total, are up 106% from last year to $2.76 billion, as sales of its CMP product line – which is only used by cryptocurrency miners – came in. at $155 million. Data center revenue rose 79% from last year to $2.05 billion, Nvidia said.
Nvidia said revenue should rise to $6.3 billion in the current quarter, with about $400 million from its CMP product line — used only by cryptocurrency miners — and more increases in game sales, adding It also plans to make progress on its planned acquisition of fellow semiconductor company Arm Ltd, which is under scrutiny both in the US and abroad.