Could NVIDIA Be Up For Another Stock Split?

Tech giant Nvidia (NASDAQ:NVDA) announced a 10-for-1 stock split in 2024, and this was the company’s sixth split in its history. Before 2024, it split its stock in 2021, which was a 4-for-1 split. After the recent stock split, shares continued to rally and hit a new high in about six months. NVDA stock is […] The post Could NVIDIA Be Up For Another Stock Split? appeared first on 24/7 Wall St..

May 12, 2025 - 15:24
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Could NVIDIA Be Up For Another Stock Split?

Key Points

  • Tech giant Nvidia split stock in 2024, will it do it again in 2025?

  • Nvidia has multiple catalysts working for it and despite the current weakness, the AI stock will bounce back.

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Tech giant Nvidia (NASDAQ:NVDA) announced a 10-for-1 stock split in 2024, and this was the company’s sixth split in its history. Before 2024, it split its stock in 2021, which was a 4-for-1 split. After the recent stock split, shares continued to rally and hit a new high in about six months.

NVDA stock is down 15% year-to-date but up 29% in 12 months. Many tech stocks have retreated since the tariff announcement, and Nvidia is no exception. However, it has shown resilience and hasn’t hit the 52-week low of $86 in 2025. It may take some time for the market to recover, but Nvidia will eventually move higher. It is a solid business with a massive client base and exceptional technology. So, will Nvidia be up for another stock split?

A stock split does not impact the value of the company but helps increase liquidity by making the shares more affordable to investors. The lower-priced shares attract more investors to the stock. Companies announce stock splits when the shares are trading at a higher price. In 2024, when Nvidia announced the split, its stock was trading over $1,000.

Stock split is not on the cards

I do not think Nvidia will have another stock split in 2025. It could have one in the future, but not this year. However, owning shares before they split can always be a good idea. A split also improves confidence amongst investors about the future of the company. Nvidia management may consider a split to overcome the market volatility while strengthening its position in the industry, but I don’t think there is time for another split this year. The management will wait for the market uncertainty to settle, and the company will gain clarity in terms of tariffs before announcing a split.

Fundamentally, Nvidia is in an excellent position. Its data center business is growing at a rapid rate, and it has impressed the market with strong quarterly numbers. In the fourth quarter, it reported a  78% year-over-year jump in sales to $39.3 billion, and the EPS jumped 82% to $0.89. In 2024, Nvidia reported a revenue of $115 billion only from the data center segment. With companies investing billions in AI, Nvidia is set to keep growing.

Shot of Corridor in Working Data Center Full of Rack Servers and Supercomputers with High Internet Visualisation Projection.

Data center will continue to drive growth

While data center remains the crux of its business today, Nvidia has the potential to expand into the automotive segment. It has massive potential for growth, and automakers are spending a huge amount of money to reach the top of the industry. The company is set to report the first quarter results on May 28, and the stock could soar after that. Nvidia has managed to beat expectations for the past two years, and I believe it will do so again. Due to the export restrictions, the management had announced that it will have to write off $5.5 billion this quarter, and investors should be prepared for it.

Nvidia’s Blackwell architecture launched a few months ago, and there is excitement surrounding the company’s next chapter. Its next product, Blackwell Ultra, a family of chips, will ship in the second half of 2025, and the next-gen graphics processing unit, Rubin, will be available in 2026. The company is aiming to announce new chips annually and will have new chips available after Rubin in 2028.

However, they shouldn’t be alarmed because Nvidia will still be growing. CEO Jensen Huang will give the keynote at Computex, an AI conference held in Taiwan on May 19. This will give insights into the future of AI and next-gen technology. Huang might speak about upcoming releases or innovations that could push the stock higher.

A solid business to own

Split or not, there are multiple reasons to add Nvidia to your portfolio. An unforgettable rally, impressive performance, massive growth in the data center segment, and a leader in the AI space, Nvidia has a lot working for it. There is no guarantee that a stock split will lead to another rally. However, Nvidia will continue to outshine the market in the long term. Buying a stock before it splits can be beneficial for investors, and when it comes to Nvidia, there’s no time like now to own it.

The post Could NVIDIA Be Up For Another Stock Split? appeared first on 24/7 Wall St..