Bengaluru, India – Nvidia’s recent 10-for-1 stock split has stirred up excitement among retail investors and raised speculation about the company’s possible inclusion in the prestigious blue-chip Dow index. This strategic move by Nvidia, a leader in artificial intelligence technology, aims to make its shares more accessible to a wider range of investors, including employees and individuals looking to invest in the company.

Following the stock split, which does not alter the overall valuation of the stock but increases the number of outstanding shares, Nvidia’s stock saw a slight dip in premarket trading. Despite this drop, the company had experienced a significant 27% increase since announcing the split and providing a strong financial forecast. Additionally, Nvidia had recently surpassed Apple to become the world’s second most valuable firm, with a market value exceeding $3 trillion, trailing behind only Microsoft.

Market analysts noted that stock splits often attract individual investors who trade in smaller amounts and have less capital to invest compared to institutional investors. While some experts believe that stock splits may not significantly impact retail trading activity, exceptions like Amazon in 2022 and Nvidia in 2021 have shown otherwise. The liquidity and flexibility of liquid stocks like Nvidia can lead investors to assign higher valuations to these companies, making them attractive options in various market environments.

Nvidia’s post-split stock price was trading at $120 per share, down from $1,200 before the split, positioning it as a potential candidate for the 30-member Dow index, which is weighted based on stock prices. However, a spokesperson from S&P Dow Jones Indices declined to comment on potential additions or deletions to the index, leaving the decision on Nvidia’s inclusion uncertain.

Overall, Nvidia’s stock split has generated excitement in the investment community, with many keeping a close eye on the company’s future prospects and its potential impact on the broader market. As the landscape of the tech industry continues to evolve, Nvidia’s strategic moves and financial performance will undoubtedly play a crucial role in shaping its position among industry giants.