Nvidia is 25x Apple, before 10-to-1 stock split
U.S. chipmaker Nvidia has traded more than 25 times the price of Apple stock since early 2024, as it is set to begin trading in a much-anticipated 10-for-1 stock dividend.
Nvidia ( NVDA ) shares are up more than 150 percent since the start of 2024, while Apple ( AAPL ) shares are up just 6 percent year-to-date (YTD), according to Nasdaq data.
Nvidia is dominating Apple shares in the short term. On the monthly chart, Nvidia's stock is up 34%, while Apple's stock is up a little over 7%.
Nvidia is the world's largest chip maker. The rise in valuation is due to rising demand for semiconductor chips, mainly due to artificial intelligence (AI) algorithms.
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Nvidia fell 0.25% in premarket trading ahead of a 10-for-1 stock split
Shares of Nvidia were traded in premarket trading on Monday ahead of the stock split, which begins trading on June 10.
Nvidia was trading at $120.89 as of 11:40 am UTC, down 0.25% in pre-market trading. However, shares of Navia have risen more than 10 percent in the past five days, according to Yahoo Finance data.
The chip maker became the fifth “Magnificent Seven” stock to pay a dividend starting in 2022. Other companies that have filed stock dividends include Apple, Tesla, Amazon and Alphabet.
While stock splits can increase retail interest, they can also introduce more volatility, Adam Koons, chief executive officer at Winthrop Capital, told Yahoo Finance.
“They may be a bit more quick and impulsive in their buying and selling decisions, so that could lead to higher volatility when they start to eclipse institutional buyers.”
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Will Nvidia overtake Apple as the world's second largest company?
Nvidia reached a market capitalization of $3 trillion last week, buoyed by demand for semiconductor chips.
On June 5, Nvidia briefly surpassed Apple as the world's second-most valuable company before slipping into third place. The $3.01 trillion valuation represented a new all-time high for Nvidia, which is currently back at $2.97 trillion.
Nvidia's graphical processing unit (GPU) chips serve as the go-to hardware solution for developing AI applications.
Leading AI development firms such as OpenAI, Google, and Microsoft all use NVIDIA chips for AI development, fueling huge demand for chip manufacturing.
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