Following its Q1 2024 earnings announcement Wednesday, Nvidia announced that it will establish a 10-for-1 stock split, set to take effect June 7. Nvidia (NVDA) blasted profit expectations out of the water in the first quarter of the fiscal year 2024, reporting adjusted earnings per share (EPS) for the quarter of $6.12 on revenue of $26 billion. This is a jump of 461% and 261%, respectively, from a year ago.
The $26B EPS is reportedly 5.3% higher than expected. The company also announced it is raising its dividend from $0.04 per share to $0.10. In the current Q2, Nvidia expects revenue of $28 billion plus or minus 2%.
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Nvidia Stock Continues Its Meteoric Rise In 2024 As Chips Remain In High Demand
Due to its chip technology, Nvidia is the far-and-way leader in the artificial intelligence sector. Throughout the last year, the tech sector has seen a massive increase in AI interest. The chips from Nvidia are crucial in the development of this technology, which has spared the boom in NVDA stock amongst investors. As of May 2024, NVIDIA has a market cap of $2.335T, which ranks it third amongst all companies worldwide in terms of market cap.
“The next industrial revolution has begun — 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,” said Jensen Huang, founder and CEO of NVIDIA. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient while expanding revenue opportunities.”
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According to the software company’s quarter report, each record holder of common stock, as of the close of the market on Thursday, June 6, 2024, will receive nine additional shares of common stock. The share will be distributed after the close of the market on Friday, June 7, 2024. Trading is expected to commence on a split-adjusted basis at market open on Monday, June 10, 2024.
Furthermore, Nvidia stock rose as much as 4% in extended trading on Wednesday afternoon.