Nvidia stock split - how will you investors play it?
Discussion
I'm very new to investing so please go easy on me if I get the terminology incorrect.
How do you think the stock split will go on Friday? I've seen massive growth in the last few days. I keep reading of a potential dip in price around the time of the 10:1 stock split.
What's the play? Just ride it through? Sell now and try to catch the dip?
How do you think the stock split will go on Friday? I've seen massive growth in the last few days. I keep reading of a potential dip in price around the time of the 10:1 stock split.
What's the play? Just ride it through? Sell now and try to catch the dip?
Personally I’m just holding, and intend to do so for a considerable time as whilst I’m currently close to 400% up already, I still see quite a upside to the company.
The share split just makes the company far more attainable to many who dont have £1k to throw at a single share, so I’d expect increased activity next week on the back of it.
The share split just makes the company far more attainable to many who dont have £1k to throw at a single share, so I’d expect increased activity next week on the back of it.
In theory a stock split should have no impact on the overall valuation of the company, so 1 share should equal 10 at the end of the day. However it does seem to have stirred up some excitement amongst investors. Personally I'm expecting a little bubble, followed by a correction later next week. After which I'm hoping things carry on much as they were.
Although it should be noted that Nvidia's market cap has just exceeded that of Apple (3.01T vs 3.00T), so I'm not sure how much further it has to go.
Although it should be noted that Nvidia's market cap has just exceeded that of Apple (3.01T vs 3.00T), so I'm not sure how much further it has to go.
FreeLitres said:
I saw some Youtuber finance content creator saying that Nvidia is set to become the biggest/most valuable company in the world. Is that remotely possible, or just something to build up hype and stimulate investment?
Yes it could very easily happen. Well publicly traded company by market cap, I think it’s second only to Microsoft which is a couple of 100bn more.
2 GKC said:
FreeLitres said:
I saw some Youtuber finance content creator saying that Nvidia is set to become the biggest/most valuable company in the world. Is that remotely possible, or just something to build up hype and stimulate investment?
It’s number 2 now isn’t it? There’s some bemusement about why they went for a 10 times split - I saw one comment that pointed out there will be enough shares to give everyone in the world 3 each!
bmwmike said:
Can't see the AI hype going away any time soon.
I don't disagree but it's worth remembering that's what they were saying just before the ".com" crash at the end of the 1990s. It all sounds very familiar. "Historically, the dot-com boom can be seen as similar to a number of other technology-inspired booms of the past, including railroads in the 1840s, automobiles in the early 20th century, radio in the 1920s, television in the 1940s, transistor electronics in the 1950s, computer time-sharing in the 1960s, and home computers and biotechnology in the 1980s." - Wikipedia
jimothyc said:
In theory a stock split should have no impact on the overall valuation of the company.
Exactly, it's all smoke and mirrors apart from the fact some people feel "better off with more" and some people think a higher share price means the shares are "too expensive".You get the same effect selling tickets for a tombola. Ten tickets for £5 sounds so much better then one ticket for £5 but the odds remain the same.
The downside is anything that adds "froth" to a share price increases the risk of an eventual downturn.
Hobo said:
Me neither, hence the intention of holding long term.
We haven't even touched the surface of AI possibilities.
Which currently is actually just massively inefficient machine learning, not actual artificial intelligence. It's the brute force application of massive computation that has now become possible thanks to Moore's Law.We haven't even touched the surface of AI possibilities.
With "fractional share" trading now widely available stateside (not that they're really shares, but your average retail punter doesn't care), I doubt there's going to be meaningfully greater participation from people who can't afford to buy a whole share - and if there is, in isolation it's going to be indiscernible anyway given the size and structure of the market. Obviously people may think/hope otherwise, pile in accordingly before the split and turn it into a temporarily self-fulfilling prophecy...but that's just the madness of crowds for you.
I suppose where you might expect a more tangible effect is through the options market, due to lot size and proliferation of daily/weekly contracts whereby dealers' resultant gamma hedging can arguably be a bit of a tail that wags the dog.
I suppose where you might expect a more tangible effect is through the options market, due to lot size and proliferation of daily/weekly contracts whereby dealers' resultant gamma hedging can arguably be a bit of a tail that wags the dog.
Edited by NowWatchThisDrive on Thursday 6th June 13:37
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