Nvidia's Price: A $160,000 Split-Free Reality

Nvidia's stock price would be an astronomical $160,819.20 today if it had never undergone its six stock splits. The AI chip leader has conducted splits in 2000, 2001, 2006, 2007, 2021, and most recently in 2024, following its January 1999 IPO. These corporate actions are designed to lower the per-share price, thereby increasing accessibility for retail investors.

Each stock split increases the number of outstanding shares while proportionally decreasing the price, maintaining the company's overall market capitalization. For example, a 10-for-1 split in June 2024, which saw the stock trading around $1,200, brought the price down to $120 per share. This strategy not only benefits investors by offering more affordable entry points but also aids Nvidia in employee stock option grants and buyback programs.

Senior management proposes stock splits, which require approval from the board of directors and a majority of shareholders. The process involves amending the company's Restated Certificate of Incorporation. Important dates include the shareholder of record date, the effective split date, and the post-split trading date, which usually occur within a week.

Fractional shares are not issued by Nvidia during splits; investors should consult their brokerage firms. If Nvidia's stock had maintained its pre-split value, its March 27, 2026, closing price of $167.52 would translate to that massive $160,819.20 valuation, effectively excluding most individual investors.