Nvidia 10-for-1 stock split goes into effect after stock price for the chipmaker doubled this year

Photo: The Canadian Press

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2024 exhibition in Taipei, Taiwan, Sunday, June 2, 2024.

Nvidia's 10-for-1 stock split is in effect, giving investors nine additional shares for every one that they already own.

Shares declined slightly to $119.77 shortly after the market open on Monday.

Nvidia’s stock price has more than doubled this year after more than tripling in 2023 and it's now the third most valuable company in the S&P 500. The meteoric ride allowed Nvidia to briefly surpass Apple last week as the second most valuable company in the U.S. Nvidia surpassed $3 trillion in market value.

The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. The company's revenue more than tripled in the latest quarter from the same period a year earlier.

Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some eye-popping numbers.

Earlier this year, it passed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.168 trillion) and Apple ($3.029 trillion). The company was valued at around $418 billion two years ago.

The company's 10-for-1 stock split went into effect at the close of trading on Friday. The move gives each investor nine additional shares for every share they already ownCompanies often conduct stock splits to make their shares more affordable for investors. Nvidia’s stock closed Wednesday at $1,224.40 and it's just one of 11 companies in the S&P 500 with a share price over $1,000.