NVIDIA’s Market Cap Hits 2.81Trillion,Just100 Billion Behind Apple

May 29, 2024 – NVIDIA, a leading company in the artificial intelligence industry, has once again delivered an impressive financial report, causing its share price to soar past the $1000 mark.

The stock closed at 1140.59pershareyesterday,withagainof7.132.81 trillion. This puts the company just about 100billionshyofApple’s2.91 trillion market cap.

It’s worth noting that along with the release of its financial report last week, NVIDIA also announced a “1-for-10” stock split plan, which will take effect after the market closes on Friday, June 7th. This makes NVIDIA the eighth publicly listed company on the US stock market to announce a forward stock split plan this year, following in the footsteps of companies like Walmart and Chipotle.

According to an analysis report released by Bank of America, although stock splits do not affect a company’s market capitalization, they are often seen as a bullish signal by the market, especially in the case of forward splits. Most importantly, NVIDIA is currently one of the most favored stocks on Wall Street.

Based on Bank of America’s statistics, companies in the S&P 500 index that have announced stock splits since 1980 have significantly outperformed the index in the 3, 6, and 12 months following the initial announcement. On average, the share prices of these companies have increased by 25.4% within 12 months, compared to an average increase of 11.9% for the S&P 500 index during the same period.

For example, when NVIDIA executed a 4-for-1 stock split in 2021 with a share price around 600,thestockreachedahighof835 just before the split took effect. In the aftermath of the split, NVIDIA’s share price surged by over 450%.

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