While stock splits can signal confidence in a company’s future performance, they may also introduce significant price volatility post-split.
United States chipmaker Nvidia has outperformed Apple stock by more than 25 times since the beginning of 2024, as its highly anticipated 10-to-1 stock split approaches.
Nvidia (NVDA) shares have surged over 150% since the start of 2024, while Apple (AAPL) shares have only increased by 6% year-to-date (YTD), according to Nasdaq data.
Nvidia has also been outperforming Apple in the short term. Over the past month, Nvidia’s stock price has risen by 34%, compared to Apple’s modest increase of just over 7%.
As the world’s largest chip manufacturer, Nvidia’s valuation has soared due to the rising demand for semiconductor chips, driven primarily by advancements in artificial intelligence (AI) algorithms.
Summary Review: Nvidia’s impressive performance, significantly outpacing Apple, underscores the growing demand for semiconductor technology, especially in the AI sector. However, while the upcoming 10-to-1 stock split demonstrates the company’s confidence, investors should remain aware of potential price volatility following the split.
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