Nvidia's $3 Trillion Market Cap: A Gamechanger After 10-for-1 Stock Split

Santa Clara, California United States of America
Despite growth, Nvidia faces criticism for high valuation and concerns about sustainability of growth.
Long-term investors who invested $25,000 in Nvidia five years ago saw their investment grow to about $850,000.
Nvidia became the third US public company to cross the $3 trillion market cap threshold in January 2025.
Nvidia is scheduled to undergo a 10-for-1 stock split after the market close on June 10.
The company saw significant growth due to increasing demand for chips used in high-level tech and AI development.
Nvidia's $3 Trillion Market Cap: A Gamechanger After 10-for-1 Stock Split

Nvidia, a US tech powerhouse and computer and software company, saw its shares begin trading on a 10-to-1 split on June 10, 2024. This move made the stock more accessible for retail investors as it had become one of the most sought-after equities due to soaring demand for its chips. Nvidia's confidence in continued growth comes from the increasing market demand for chips used in high-level tech and artificial intelligence (AI) development.

The company, which was founded in 1993 and pivoted to embrace AI technology in 2013, has seen significant growth. In January 2025, Nvidia became the third US public company to cross the $3 trillion market cap threshold. This milestone followed Apple's achievement of this feat in January 2022 and Microsoft's accomplishment in January 2024.

Long-term investors who invested $25,000 in Nvidia five years ago would have seen their investment grow to about $850,000, a return on investment of over 3,288%. This growth can be attributed to the increasing demand for efficient processing for AI development and Nvidia's position as a leader in this market.

Nvidia is scheduled to undergo a 10-for-1 stock split after the market close on June 10. This move, which makes each share worth one tenth of its previous value, is expected to make the stock more accessible for retail investors and could potentially attract new investors.

Despite this growth, it's important to note that Nvidia's success is not without controversy. The company has faced criticism for its high valuation and concerns about the sustainability of its growth. Additionally, some have raised questions about the long-term viability of AI as a market driver.

Sources:

  1. Washington Examiner: Nvidia stock splits after massive year of gains - Washington Examiner
  2. Finance Yahoo: Nvidia Hits a $3 Trillion Market Cap Ahead of Its 10-for-1 Stock Split. Here's What's Next for Investors.
  3. The Motley Fool: Is Nvidia Going to $5 Trillion After Its 10-for-1 Stock Split?

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Confidence

91%

Doubts
  • Are there any potential risks or challenges for Nvidia that could impact its future success?
  • Is the growth sustainable in the long term?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia stock splits after massive year of gains - Washington Examiner

Washington Examiner Zachary Halaschak Monday, 10 June 2024 17:41
  • Unique Points
    • Nvidia shares began trading on a 10-to-1 split, making the stock more accessible for retail investors.
    • Nvidia predicts continued growth as artificial intelligence becomes a major tool and companies require efficient processing for AI development.
    • Long-term investors who invested $25,000 in Nvidia five years ago would have seen their investment grow to about $850,000, a 3,288% return on investment.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Is Nvidia Going to $5 Trillion After Its 10-for-1 Stock Split?

The Motley Fool Harsh Chauhan Monday, 10 June 2024 18:13
  • Unique Points
    • Nvidia unveiled a new chip architecture to be launched in 2026.
    • Nvidia is looking to keep the heat on its rivals by announcing the Rubin platform for 2026.
  • Accuracy
    • Nvidia is a graphics specialist with a market cap approaching $3 trillion.
    • Nvidia's stock has surged 144% in 2024.
    • Nvidia announced terrific fiscal 2025 first-quarter results.
    • A stock split is a cosmetic move that doesn’t alter a company’s fundamentals or prospects.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains a few inflammatory rhetorical statements such as 'Nvidia briefly became the world's second-most valuable company after Microsoft, overtaking Apple in the charts before falling back to third position.' and 'Nvidia has generated nearly half of its fiscal 2024 data center revenue in just one quarter of the new fiscal year.', which are not formal fallacies but can be considered inflammatory. There are also a few appeals to authority such as 'analysts are upbeat about Nvidia's data center growth' and 'Nvidia's pricing power in the AI chip market', which do not constitute formal fallacies but can be considered informal fallacies. No other formal or informal fallacies were found.
    • Nvidia briefly became the world's second-most valuable company after Microsoft, overtaking Apple in the charts before falling back to third position.
    • Nvidia has generated nearly half of its fiscal 2024 data center revenue in just one quarter of the new fiscal year.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia Hits a $3 Trillion Market Cap Ahead of Its 10-for-1 Stock Split. Here's What's Next for Investors.

Yahoo Finance Danny Vena, Monday, 10 June 2024 19:58
  • Unique Points
    • Nvidia became the third US public company to cross the $3 trillion market cap threshold in January 2025.
    • Generative AI caused a paradigm shift in technology and attracted attention due to its ability to create original content.
    • To train OpenAI’s GPT-4, it took more than 25,000 of Nvidia’s top-of-the-line A100 AI processors and cost roughly $250 million.
    • Nvidia CEO Jensen Huang pivoted the company to embrace AI in 2013 and bet its future on this unproven technology.
    • Nvidia is scheduled to undergo a 10-for-1 stock split after the market close on Friday.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (85%)
    The article contains editorializing and selective reporting. The author makes statements implying that Nvidia's success is solely due to its ability to adapt to the AI revolution and that it will inevitably take the market cap crown from Microsoft. However, he fails to mention any potential challenges or competition Nvidia may face in achieving this goal. Additionally, he quotes research suggesting a potential increase in stock price following a stock split but does not disclose the source of this research.
    • Research compiled by Bank of America analyst Jared Woodard suggests that companies that split their shares tend to increase 25%, on average, in the year following the split, compared to a 12% gain for the S&P 500.
    • A growing chorus of investors believes that Nvidia will inevitably take the market cap crown from Microsoft at some point in the near future.
    • Nvidia has been on fire in recent years as the interest sparked by artificial intelligence (AI) has spread like wildfire.
  • Fallacies (95%)
    The article contains some inflammatory rhetoric and an appeal to authority, but no formal or blatant logical fallacies were found. The author uses descriptive language to build up the significance of Nvidia's market cap achievement and its potential future growth. He also quotes research from Bank of America analyst Jared Woodard to support his argument about stock splits and their impact on share prices.
    • ][The advent of generative AI in early 2023 caused a paradigm shift in technology,][] In short, generative AI is a new branch of AI that can create original content, and it’s unlike anything that came before. These AI models can write poems, fashion new songs and music, and even create digital paintings and other images. The novel abilities of these systems soon attracted the attention of technologists who realized that these same systems could be configured to draft emails, generate presentations, create charts and graphs, and even write and debug code. These abilities could increase worker productivity, thereby saving businesses time and money -- and the race was on.
    • According to research compiled by Bank of America analyst Jared Woodard, companies that split their shares tend to increase 25%, on average, in the year following the split, compared to a 12% gain for the S&P 500.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication