Jensen Huang, co-founded Nvidia Corp In its first-quarter earnings report released.

In its first-quarter earnings report released on Wednesday, Nvidia announced a 10-for-1 forward stock split. Following this announcement, the adjusted trading of shares will commence from the opening of the market on June 10.

Although stock splits don’t change a company’s financial fundamentals, they do reduce the price per share, which often has a positive impact on investor psychology, particularly among individual investors. Nvidia mentioned that the purpose of the split is to make ownership more accessible for both employees and investors.

Closing at $949.50 on Wednesday, Nvidia shares saw a nearly 4% increase in after-hours trading. With a 10-for-1 split based on this closing price, each share would be priced at $94.95, requiring investors to purchase 10 shares to maintain their existing ownership stake.

Similar stock splits were previously carried out by Alphabet , Amazon , and Tesla in 2022

Nvidia further explained that each holder of its common stock will receive nine additional shares, to be distributed after the market closes on Friday, June 7, with trading resuming the following Monday.

Over the last five years, investors in Nvidia have experienced an unprecedented surge in the stock price, which has multiplied by 25 times. Initially renowned for producing cutting-edge graphics processing units (GPUs) primarily for gaming, Nvidia has recently become a central figure in the artificial intelligence (AI) realm.

Nvidia’s revenue in the first quarter of its fiscal year skyrocketed by 262% compared to the same period a year ago, marking the third consecutive quarter of growth exceeding 200%.

Furthermore, the chipmaker announced a substantial hike in its quarterly cash dividend, increasing it from 4 cents per share to 10 cents before the stock split. Post-split, the dividend will be adjusted to one cent per share.

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