Nvidia (NASDAQ: NVDA) shares are now trading at a fraction of their previous value due to a recent 10-for-1 stock split. This strategic move has made Nvidia stock accessible to a wider range of investors, with shares priced at approximately $100 instead of over $1,000.

Stock splits, such as this one by Nvidia, are mechanisms used by companies to lower the price of individual shares by increasing the overall number of shares available. This adjustment is common among technology firms, exemplified by the recent splits by companies like Alphabet, Amazon, and Tesla.

As Nvidia’s share price surged past $900 earlier this year, speculation arose about a potential split. Following the announcement of the split and an impressive earnings report, Nvidia’s stock price soared past $1,000. Now, post-split, it’s time to assess what lies ahead for the company.

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Insights into Nvidia’s stock split

Following the stock split, Nvidia issued new shares to current shareholders after market close on June 7. Consequently, as trading commences, the split-adjusted pricing comes into effect. Despite this adjustment, the total market value of Nvidia, which briefly surpassed $3 trillion last week, remains formidable, although it has slightly dipped below Apple‘s value to claim the second-largest U.S. company spot.

The split does not impact the value of existing investments in Nvidia for prior shareholders. Former owners of one share now possess ten shares, retaining an investment value of approximately $1,200.

Whether buying or selling Nvidia shares post-split, investors will notice a key difference. Buyers can now easily acquire Nvidia stock, even with smaller investments, without resorting to fractional shares. Additionally, for sellers, the split presents newfound flexibility, allowing shareholders with a $1,200 stake to adjust their investment without full divestment, a feat unattainable before the split.

Looking ahead, the stock split is a supportive move for Nvidia and its shareholders. However, its impact on immediate or future stock performance is muted, as these events are more mechanical than catalytic.

Factors Driving Nvidia’s Potential Growth

While the stock split may not be the primary driver of Nvidia’s stock performance, several other catalysts are poised to propel the company’s shares upward in the long term. These factors are intricately tied to Nvidia’s core business of designing graphics processing units (GPUs) and other AI products and services.

Of particular interest are two forthcoming releases. First, Nvidia’s upcoming H200 GPU, promising nearly doubled inferencing capabilities compared to the current H100, is set for shipment in the second quarter, with demand outstripping supply. Secondly, the highly anticipated debut of Nvidia’s Blackwell architecture, accompanied by its most powerful chip, offers transformative potential. The Blackwell architecture could deliver substantially reduced total cost of ownership and superior energy efficiency when compared to the existing Hopper architecture.