Nvidia Shares Pop After Company Announces 4-for-1 Stock Split

Shares of Nvidia Corp. have been rising in the last few days after the company announced last Friday a four-for-one stock split.

With the company looking to make its stock less expensive for investors, the chipmaker saw gains of over 5% since the news.

Santa Clara, California-based Nvidia said stock holders of record on July 21 would receive dividend of three additional shares after the close of trading on July 19, with the stock trading on a split-adjusted basis beginning July 20.

The announced split will require stockholder approval at the company’s annual meeting in June.
The company will be releasing its fiscal-first-quarter Wednesday after the closing bell, and its videogame chips will be looked at.

The consensus is that Nvidia doubled its videogame revenue to $2.73 billion for the quarter ended May 2, with expected overall adjusted earnings of $3.31 a share on revenue of $5.41 billion.

The industry-wide chip shortage has caused prices to rise for some products and has createed delays in filling orders for others.

NVIDIA outsources its production to Taiwan Semiconductor Manufacturing (NYSE:TSM) and Samsung Electronics (OTC:SSNLF), which are struggling to fulfill orders. The company’s Chief Executive Officer, Jensen Huang, told investors in February that it has enough supply to grow throughout this year, and some segments, like data centers, won’t be hurt by chip shortages.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.