Nvidia announces 10-for-1 stock split, revenue gains in first quarter earnings report
Graphics and artificial intelligence company Nvidia announced a 10-for-one stock split as a part of its first quarter earnings release Wednesday.
The company reported an over 260% increase in revenue compared to the first quarter in 2023, while data center revenue jumped 427% from last year to $22.6 billion, an increase fueled in part by the demand for generative AI training, the company said.
"The next industrial revolution has begun," Jensen Huang, Nvidia founder and CEO, said in a press release. "Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center − AI factories − to produce a new commodity: artificial intelligence."
Nvidia stock split to hit in June
Investors who hold Nvidia stock after market close on June 6 will receive nine additional shares per share owned after market close on June 7, with prices of those shares likewise splitting on a 10-to-one basis. Trading on the split basis will begin June 10.
The Silicon Valley-based company said that it would pay out a one cent per share dividend based on post-split holdings on June 28. Shareholders must have shares after market close on June 11 to receive the dividend.
Nvidia stock price
The tech giant's stock price jumped after the earnings release.
Nvidia closed the trading day at $949.50 per-share and is hovering around the $1,007 per-share mark in after-hours trading.
The activity leaves the stock on the verge of surpassing its one-year closing high of $950.02, which could be eclipsed Thursday.
What does Nvidia do?
Nvidia is a full stack computing company founded in 1993.
Its artificial intelligence clients include ChatGPT, Amazon, Snap and Google, according to a brief provided by the company.
The company also produces graphics cards that are key for modern gaming.