San Francisco, California – Nvidia’s shares soared by 9% to a new all-time high above $1,000 on Thursday following another impressive earnings report. The company, a leader in AI chips, announced a 10-for-1 split of its stock, aiming to make it easier for retail investors to purchase its shares.

Analysts at Bank of America, led by Jared Woodward, praised Nvidia’s decision to split its shares as a move towards making them more accessible to a wider range of investors. This marks Nvidia as the fourth major tech company, alongside Google, Amazon, and Tesla, to announce a stock split since 2022.

The trend of big tech companies splitting their stock is seen as a way to lower share prices, making it more feasible for individual investors to participate in the market. Bank of America highlighted the historical trend that stock splits tend to be bullish, with companies often experiencing significant gains following a split.

Bank of America’s analysts reiterated their bullish outlook on Nvidia’s shares, raising their 12-month price target for the company from $1,100 to $1,320. They emphasized the potential for Nvidia’s shares to increase by 26% following the stock split, based on historical data.

While stock splits have historically been associated with positive market performance, Bank of America warned that there are no guarantees. Companies announcing splits can still experience negative returns, particularly in challenging economic environments.

Despite some cautionary notes, Wall Street analysts remain overwhelmingly optimistic about Nvidia’s prospects. The company’s plans to develop a new AI chip within the next year were seen as a positive sign for investors, further reinforcing confidence in its potential for growth.

Overall, the announcement of the stock split and Nvidia’s strong earnings report have positioned the company favorably among investors and industry analysts. The move towards making shares more accessible could open up new opportunities for both retail and institutional investors to engage with the company’s stock.