After reporting first-quarter 2024 earnings results on Wednesday, Nvidia announced it will implement a 10-for-1 stock split, effective June 7. Nvidia (NVDA) has blown its first-quarter fiscal 2024 earnings expectations out of the water. , with adjusted earnings per share (EPS) for the quarter of $6.12 on revenue of $26 billion. This is a jump of 461% and 261% respectively from a year ago.
Earnings per share of $26 billion are reportedly 5.3% higher than expected. The company too announced it increases its dividend from $0.04 per share to $0.10. For the current second quarter, Nvidia expects revenue of $28 billion plus or minus 2%.
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Nvidia Stock Continues Its Rapid Rise in 2024 as Chips Are Still in High Demand
Thanks to its chip technology, Nvidia is the distant leader in the artificial intelligence sector. Over the past year, the technology sector has seen a huge increase in interest in AI. Nvidia's chips are crucial in the development of this technology, which has spared the boom in NVDA stock among investors. As of May 2024, NVIDIA has a market capitalization of $2.335 trillion, ranking it third among all companies worldwide in terms of market capitalization.
“The next industrial revolution has begun – companies and countries are partnering with NVIDIA to shift trillions of dollars' worth of traditional data centers to accelerated computing and build a new type of data center – AI factories – to produce a new product : artificial intelligence,” said Jensen Huang, founder and CEO of NVIDIA. “AI will deliver significant productivity gains for almost every sector, helping companies become more cost and energy efficient while increasing revenue opportunities.”
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According to the software company's quarterly report, each record holder of common shares will receive nine additional shares of common stock as of the market close on Thursday, June 6, 2024. The stock will be distributed after market close on Friday, June 7, 2024. Trading is expected to commence on a split-adjusted basis at the open of the market on Monday, June 10, 2024.
Additionally, Nvidia shares rose as much as 4% in extended trading Wednesday afternoon.