Nvidia Stock Split 2024: How High Could Shares Go Before the Next Move?

Nvidia (NASDAQ: NVDA) continues to dominate the AI sector, holding the title as one of the hottest stocks on the market and securing its position as the second-largest company globally by market capitalization. This speaks volumes about Nvidia’s current standing, especially when considering its revenue relative to Apple (NASDAQ: AAPL), the current market leader. The growth expectations for Nvidia are extremely high, as investors are eagerly anticipating its continued expansion. There are certain takeaways from Nvidia Stock Split.

Key Takeaways from 24/7 Wall St. for Nvidia Stock Split:

• Nvidia’s position as the leading AI stock has fueled a significant increase in its valuation, with its share price continuously pushing toward new all-time highs.
• Investors are speculating about when and at what price Nvidia might announce another stock split, and whether this could serve as a catalyst for future growth.
• If you’re interested in stocks with significant upside potential, be sure to check out our latest report, “The Next NVIDIA”, highlighting a software stock with the potential to deliver 10X returns.

Nvidia’s explosive growth, with a near 100% year-over-year increase in revenue in the past two quarters, shows no signs of slowing down. As long as demand for its high-performance chips remains strong, Nvidia is positioned for major long-term growth.

What’s Next for Nvidia’s Stock?

To continue its growth trajectory post Nvidia Stock Split, Nvidia must consistently exceed earnings expectations every quarter. If the company maintains its performance, there’s no reason why this trend won’t persist. Historically, Nvidia has a strong track record of stock splits, and its rising stock price could generate significant anticipation around another split.

But when could this happen? Let’s explore the factors that could trigger a stock split and when Nvidia might consider increasing its share count.

Q3 Results Fuel Optimism

Nvidia’s impressive Q3 results have cemented its position as a leader in the AI market. Revenue surged by 94%, and earnings jumped 111%, demonstrating the company’s potential in this rapidly expanding sector. For the first time, Nvidia posted a record $35.1 billion in revenue, resulting in a price-to-sales ratio of nearly 30 times—a hefty figure, but one that’s justified by its high-margin business and strong growth prospects.

With a forward price-to-earnings ratio of about 31 times, Nvidia’s valuation is more than reasonable. If growth expectations hold, it’s possible that this multiple could remain steady or even increase. Analysts expect Nvidia to reach $5 per share in earnings next year post Nvidia Stock Split, with that number potentially hitting $10 per share by 2026. If this happens, a 30-times multiple would push Nvidia’s stock price to around $300—though this could be higher if multiples expand.

Nvidia remains the crown jewel of the semiconductor industry, and its growth potential is a major reason why investors are bullish on the stock.

Could a Stock Split Be on the Horizon?

At a price of $300 per share, Nvidia would still be far from the typical price point that triggers a stock split. The company last implemented a 10-for-1 stock split in June 2024, reducing the price from about $1,200 per share to around $120. Historically, Nvidia has considered splitting its stock when shares hit the four-digit mark.

If Nvidia’s growth trajectory continues, the stock could reach $1,000 per share in three to four years, and a stock split could be in the cards for 2027 or 2028. However, this depends on Nvidia maintaining its impressive growth rate while fending off increasing competition from other chipmakers. For now, Nvidia chips continue to dominate the market in terms of performance, but the rapidly evolving tech landscape presents risks that investors should be aware of.

Wall Street’s Confidence in Nvidia

Nvidia is overwhelmingly rated a “buy” by analysts, with the majority (around 90%) maintaining strong buy or equivalent ratings. Several analysts, including those from Goldman Sachs, Cantor Fitzgerald, Oppenheimer, and Piper Sandler, have raised their price targets for Nvidia. Goldman Sachs analyst Toshiya Hari has increased his price target from $150 to $165, reflecting the market’s confidence in Nvidia’s growth potential.

While it may take a few years for Nvidia to consider another stock split, continued growth in AI could lead to renewed discussions about a split. If growth accelerates even further, talk of a stock split could resurface sooner than expected.

Could “The Next NVIDIA” Be Your Big Opportunity?

Nvidia’s meteoric rise has provided investors with remarkable returns, but the window for jumping on the AI bandwagon isn’t closed. The same 24/7 Wall Street analyst who first predicted Nvidia’s AI-driven success in 2009 has released a new report titled “The Next NVIDIA.” This report highlights breakthrough AI technologies and stocks poised to lead the next phase of growth, potentially offering life-changing returns for early investors.

If you missed out on Nvidia’s massive gains post Nvidia Stock Split, now may be the perfect time to explore other high-potential AI stocks.

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