Nvidia's Stock Price Reaches Record High, Announces Stock Split

The stock price of American technology company Nvidia has reached an all-time high. According to CNBC, this milestone was achieved after the company released impressive financial results for the first quarter ending in April.

Nvidia's net profit increased sevenfold, reaching $14.88 billion in the second quarter, compared to just $2.04 billion in the same period last year. Additionally, the company reported total revenue of $26.04 billion. Revenue from data centers saw a 427% increase from the previous year, reaching $22.6 billion. Nvidia's earnings per share also rose from $0.82 to $5.98.

The improvement in Nvidia's financial performance is largely due to companies like Google, Microsoft, Meta, Amazon, and OpenAI purchasing billions of dollars worth of Nvidia's graphics processing units (GPUs). These GPUs are advanced and expensive, used primarily in AI applications.

Record High Stock Price

Following the release of its attractive financial results, Nvidia's stock price reached a record high. Although the stock price fell by 0.46% during regular trading on Wednesday, it surged by 6.06% during after-hours trading, reaching an all-time high of $1,007. With this historic high, the company announced a stock split.

Announcement of Stock Split

Nvidia has announced a stock split, where one share will be split into ten shares. This stock split will take effect from June 7, according to the company. The continuous rise in the stock price has made Nvidia a highly valued company. Over the past five years, the company's stock price has increased 25 times. In 2024 alone, its stock has doubled.

Nvidia's Success and Future

Nvidia's success largely hinges on its AI chips. The increasing demand for GPUs used in AI applications has significantly boosted the company's revenue. These GPUs are being purchased by other companies for use in their AI projects, strengthening Nvidia's market position.

This stock split could attract smaller investors to buy shares, potentially increasing the demand for Nvidia's stock in the market. Nvidia is expected to further strengthen its financial performance in the coming days.

Overall, the rise in Nvidia's stock price and the announcement of the stock split indicate a bright future for the company. This progress is the result of the company's leadership, strategy, and innovative technology, establishing Nvidia as a leading company in the global technology market.