Nvidia has announced a 10-for-1 stock split, its second split since 2024, as the AI chip giant's market capitalization approaches $4 trillion. The split will make shares more accessible to retail investors, with the post-split price expected near $120.
The company's dominance in AI training and inference chips has driven shares up 200% since the beginning of 2025. Nvidia's H200 and B100 GPU chips remain the industry standard for AI workloads, commanding 80% market share in the data center AI accelerator segment.
Revenue for the most recent quarter reached $45 billion, with data center revenue alone exceeding $38 billion. Profit margins of 65% reflect the company's pricing power in a market where demand far exceeds supply for the most advanced chips.
The stock split is expected to increase retail investor participation and potentially qualify Nvidia for Dow Jones Industrial Average inclusion, which would trigger additional institutional buying through index-tracking funds.
Bears argue that competition from AMD, custom chips from Google and Amazon, and the eventual maturation of AI spending will pressure Nvidia's dominance. Bulls counter that the company's software ecosystem (CUDA) creates switching costs that protect its position even as hardware alternatives emerge.
