Nvidia begins trading at $120 after stock split

by Julia Shapero - 06/10/24 11:56 AM ET

Two people engage at the Nvidia booth at a trade show. — Manu Fernandez, Associated Press file
People gather in the Nvidia booth at the Mobile World Congress mobile phone trade show, Feb. 27, 2014, in Barcelona, Spain. Nvidia joined the exclusive club of companies with a $3 trillion market capitalization, June 5, 2024, as the chipmaker benefits from the growing use of artificial intelligence. Nvidia Corp. joins companies Apple and Microsoft in the $3 trillion club.

Shares in Nvidia began trading at around $120 on Monday morning after the powerhouse chipmaker split its stock.

Nvidia’s 10-for-1 stock split cut the company’s share price, which previously sat around $1,200, by 10. The split makes Nvidia’s shares more affordable without diluting investor holdings or the value of the company.

The chipmaker’s stock dipped slightly Monday morning to $117.60 after opening at $120.35. However, by late morning, it had recovered to $122.38.

Nvidia, whose processors are high in demand among companies developing artificial intelligence (AI), reached a $3 trillion market capitalization for the first time last week and overtook Apple as the second-most valuable company in the world.

The milestone is the latest in Nvidia’s meteoric rise. The company reached the $1 trillion mark last year and the $2 trillion mark just a few months ago.

The company’s chips are central to powering the AI boom, as major tech companies race to develop and release their own AI models. However, Nvidia’s dominance has drawn the scrutiny of federal regulators, with the Department of Justice reportedly investigating the chipmaker.

Other firms with large roles in the AI boom — Microsoft and OpenAI — also are reportedly being investigated by the Federal Trade Commission.

Tags NVIDIA