On June 5, Nvidia's stock price hit a record high, closing at $1,224.40, up 5.16%, with a market value exceeding $3 trillion, surpassing Apple to become the second largest technology company in the U.S. stock market.

As a leader in the AI industry, Nvidia's stock price has accelerated significantly since OpenAI released ChatGPT at the end of 2022. So far this year, Nvidia's stock price has increased by more than 150%. Last year, the cumulative increase was about 200%. In the past five years, the cumulative increase was 3,300%, far exceeding the increase of the Nasdaq index during the same period.

source：uSMART SG

10-to-1 stock split

Investors who still hold Nvidia stock after the close of trading on Thursday will receive 9 additional shares after the close of trading on Friday, and the stock price will be adjusted to reflect the split. Nvidia will begin trading at the adjusted price on June 10 (next Monday).

In theory, the split itself does not change the actual value of the company. A stock split is the act of increasing the number of existing outstanding shares by a certain proportion, while reducing the par value of each share by a proportion, thereby reducing the price of a single share. Stock splits are a common strategy for companies to attract investors and increase liquidity. Although the stock price drops after the stock split, the total number of shares issued and outstanding also increases, and the product of the two remains unchanged.
After the stock split, the original shareholders' shareholding ratio remains unchanged. A stock split simply splits the original stock into more shares in proportion, and the number of shares held by shareholders will increase, but the proportion of equity held in the company will remain unchanged. For example, a 2:1 stock split will split each share into 2 shares, but the shareholding ratio will remain the same. In addition, the company will make an "ex-rights and ex-dividend" adjustment, and the stock price will be adjusted accordingly according to the split ratio to keep the market value before and after the split consistent and avoid damage to shareholders' rights and interests.

"Chip maniacs" will speed up the pace of updates again

On June 3, COMPUTEX (Taipei International Computer Show) 2024 opened, and AI became the protagonist and focus. Among a number of terminal chip designers including NVIDIA, Intel, AMD, Qualcomm, MediaTek and Arm, NVIDIA is the most watched.

NVIDIA co-founder and CEO Huang Renxun updated the AI GPU technology roadmap at the COMPUTEX2024 conference: in 2025, NVIDIA will release Blackwell Ultra, in 2026, the new architecture Rubin will be launched, and in 2027, Rubin Ultra will be released.

Starting from the investor meeting in October 2023, NVIDIA will change the rhythm of updating new chip products from two years to one year. At that meeting, Huang Renxun announced that the H200 and B100 GPUs are expected to be launched this year; in 2025, NVIDIA X100 GPU will also be available.

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