What Are Stock Splits and Why Did Nvidia Do One?

Sometimes a stock flies so high that its price becomes out of reach for the average investor. Nvidia Corp. is the latest example. Excitement over its advanced microchips for artificial intelligence helped to double its share price this year to more than $1,100, a daunting number for many retail investors.

So Nvidia said in May that it would carry out a 10-for-1 “stock split,” its second split in three years, to reduce the price of the shares and make them more accessible to retail investors and employees. Since Nvidia’s 4-for-1 split in May 2021, the stock has surged more than 500%.

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