Nvidia Stock - How to Trade It After the Split

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TheStreet 20 July, 2021 - 01:12pm 4 views

When is NVDA stock split?

Nvidia (NASDAQ: NVDA) will be executing a 4-to-1 stock split, and shares are expected to start trading on a split-adjusted basis on July 20. NasdaqIs Nvidia Stock a Buy Now After the 4-to-1 Stock Split?

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Nvidia has hauled in hundreds of millions of dollars selling its chips to cryptocurrency miners, but its exposure to that market is hurting the stock following a slide of more than 3% for Bitcoin and Ethereum in 24 hours.

Nvidia (ticker: NVDA) shares retreated 2.5% to $183.24 on Tuesday, after investors received shares in a four-for-one stock split after the close on Monday. Shares may have briefly appeared to fall harder early in the day, before market data was adjusted to account for the split.

The stock is up 74% over the past year, while the PHLX Semiconductor index, or Sox, has risen 51%.

The company’s most recent exposure to cryptocurrencies dates back to last year, when miners discovered that its Ampere-based graphics chips were good at producing Ethereum. The chips were so popular among miners—videogame players may use one or two, while miners use many, many more—that Nvidia designed a version of the semiconductors that are specifically designed for mining. It throttled the videogame cards’ mining functions.

In its fiscal first quarter, which ended in April, Nvidia sold $155 million of its crypto chips, according to finance chief Colette Kress. Management expects crypto revenue of $400 million for the second quarter.

Kress’s figures don’t include the videogame graphics chips that miners are buying–some of those used by gamers can also be put to work mining. BMO Capital Markets analyst Ambrish Srivastava estimated overall first-quarter cryptocurrency revenue was about $650 million.

Bitcoin’s drop to below $30,000 Monday and the decline in Ethereum, particularly, may have spooked investors who are betting that high cryptocurrency prices will continue to drive Nvidia’s chip sales. Near midday on Tuesday, Ethereum was trading at $1,755.86, but last year, when the price was $300 to $400 range, RBC Capital Markets analyst Mitch Steves estimated one of Nvidia’s RTX 3080 cards would net miners about $3 a day, and take 233 days to achieve profitability.

Last year’s surge of interest in the line of Ampere chips isn’t the first time Nvidia has had big exposure to the volatile cryptocurrency market. Back in 2018, its graphics processors were also popular with miners.

Toward the end of that year, a slump in Bitcoin and other crypto prices prompted miners to try unload their hardware, unleashing a flood of cheap, used Nvidia graphics cards onto the market. Nvidia’s sales slumped, with declines in revenue of as much as 31% for four straight quarters.

Write to Max A. Cherney at max.cherney@barrons.com

Nvidia has hauled in hundreds of millions of dollars selling its chips to cryptocurrency miners, but its exposure to that market is hurting the stock following a slide of more than 3% for Bitcoin and Ethereum in 24 hours.

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Is Nvidia Stock a Buy Now After the 4-to-1 Stock Split?

Motley Fool 21 July, 2021 - 02:00am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Nvidia (NASDAQ:NVDA) will be executing a 4-for-1 stock split, and shares are expected to start trading on a split-adjusted basis on July 20. The stock closed at $751.19 on July 19 with a $468 billion market cap. The price-to-earnings ratio was 89, based on a $751 share price. The company had blowout earnings last quarter, reporting over 88% year-over-year revenue growth and a 33.77% net profit margin. The share price ran to a high of $835 before pulling back. Is Nvidia stock a buy now? 

It's easy to see why some investors would shy away from Nvidia at these levels. The stock price has delivered nearly 5,000% returns over the past decade. A $10,000 investment would be worth approximately half a million dollars today. But the company is firing on all cylinders, and when you look under the hood, you will find that its future looks very bright, which can arguably justify the premium share price. One key risk to note is that Nvidia is attempting to acquire ARM Holdings from SoftBank (OTC:SFTB.Y) and has bumped into regulatory pushback. With that said, Nvidia partners with ARM, and they should do fine regardless. Nvidia has its hands in gaming, cloud data centers, cryptocurrency, machine learning, artificial intelligence (AI), professional visualization, electric vehicles (EVs), autonomous driving, 5G, and more!

Of course, you do not own more of Nvidia because of the stock split. If you cut a pizza into four slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts, and I think the company looks attractive here as a long-term investment.

In the video I break down the key fundamental highlights that will power Nvidia over the next decade. I'll also chart out Nvidia's technicals and provide an opinion on where I think the stock price is headed from here. 

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Nvidia Shares Move Lower Amid Four-for-One Stock Split Debut

TheStreet 21 July, 2021 - 02:00am

Nvidia told investors in late May that it would execute a four-for-one stock split starting on July 20, a plan that included shareholders of record on June 21 pocketing a 'dividend' of three additional shares after the close of trading last night. Essentially this would alter the composition of an investor's holding from one share at $750 each to four at $187.80 each, but make no change to the Santa Clara, California-based chipmaker's market value, which remains at around $117 billion.

Nvidia shares were marked 1.3% lower from their split-adjusted close in early trading Tuesday to change hands at $185.43 each. 

Earlier this spring, Nvidia said revenue from chips used for gaming, which comprise around half of its overall total, rose 106% from last year to $2.76 billion, while sales of its CMP product line - which is only used by cryptocurrency miners - came in at $155 million. Data center revenue was up 79% from last year to $2.05 billion, Nvidia said.

Nvidia said current quarter sales should rise to $6.3 billion, with around $400 million from its CMP product line -- which is only used by cryptocurrency miners -- and more increases from gaming sales, adding it also plans to make headway in its planned acquisition of fellow semiconductor company Arm Ltd, which is facing scrutiny both in the U.S. and abroad.

Nvidia Stock Split: Jim Cramer Says Buy the Stock Today

TheStreet 21 July, 2021 - 02:00am

Nvidia  (NVDA) - Get Report shares moved lower Tuesday as its four-for-one stock split took effect on July 20. 

As of intraday trading, Nvidia stock was down 2.46% to $183.18. 

The selling of the stock was far from a surprise for Jim Cramer, who told Action Alerts PLUS senior analyst Jeff Marks that when a stock is split, investors often take the opportunity to cash in on one of their new shares. 

In the video above, Jim Cramer explains why Tuesday's selling is actually an opportunity to buy the Action Alerts PLUS holding. 

Should you invest in Nvidia as shares trade lower after the stock split? | Invezz

Invezz 20 July, 2021 - 04:23pm

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However, NVDA pulled back more than 8% last week as investors started to take profits off the split-driven rally. The company has now accumulated a net gain of 42.25% since the start of the year.

Despite the year-to-date gains of more than 40%, Nvidia looks significantly undervalued based on price-earnings ratios and earnings growth expectations for the year and the next five years.

Stock splits often trigger significant rallies in the stock price. Although Nvidia failed to post gains on the first day of trading at the split-adjusted price, the company’s current valuation multiples suggest now could be a perfect time to invest in NVDA shares.

Nvidia trades at an attractive trailing P/E ratio of 22.26, making it a compelling investment opportunity for value investors. The company’s earnings growth forecast for this year of about 52.50% prices the stock at an even more exciting forward P/E ratio of just 10.85.

Analysts also expect the company’s bottom line to grow at a compounded annual growth rate of 26.84 for the next five years, making NVDA an attractive stock to growth investors. 

Therefore, Nvidia looks like an exciting stock to buy in Q3 2021 ahead of its impressive growth story. Moreover, the recent pullback of more than 8% creates a perfect entry opportunity.

Technically, Nvidia’s stock price appears to have recently pulled back after a solid rally. However, the company’s share price bounced back on Monday before Tuesday’s slight decline. 

NVDA’s rebound momentum still looks strong after avoiding falling to conditions. 

Therefore, investors will gain from the current rebound by targeting profits at $197.83 or higher at $209.13. The key support levels are $172.86 and $162.50.

Nvidia’s current pullback presents a compelling opportunity to buy one of the best technology stocks in the market. In addition, NVDA’s valuation multiples suggest the shares could be potentially undervalued, while the recent stock split will attract event-driven investors. Therefore, it could be best to buy NVDA stock now before the rebound pushes the share price higher.

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Beware Nvidia's Stock Split

TheStreet 20 July, 2021 - 01:02pm

Nvidia ( (NVDA) - Get Report) shares have been on a roll lately. Investors are even more pumped than usual about prospects at the San Jose, Calif.-based graphics chip company. This is why traders should get ready to sell.

On Wednesday, Nvidia common stock will split 4-for-1. Managers announced the distribution in late May and shares bounced 28% higher over the next eight weeks.

There is every reason to believe Nvidia stock is headed for a correction.

Operationally Nvidia is firing on all cylinders. First quarter revenue soared to $5.66 billion, up 84% year-over-year. Earnings per share jumped to $3.03, a rise of 106%. Nvidia’s best-in-class silicon is finding its way into more artificial intelligence setups at hyperscale data centers, supercomputers and even automobiles. I have been recommending the stock for the past 20 years.

Yet traders should be concerned about the mechanics of stock splits, especially for high profile technology firms such as Nvidia. Shares tend to run up on news of the split, then sell off following the allocation.

Apple ( (AAPL) - Get Report) announced a 4-for-1 stock split in late July 2020 to shareholders of record August 31. Shares ran up from $95 to $134 ahead of the distribution, a gain of 41%. In the 2 weeks post-split shares traded back to $104, a loss of 22%.

The same fate befell Tesla ( (TSLA) - Get Report) shareholders. Managers at the electric maker announced in August 2020 a 5-for-1 split. Shares rose 81% ahead of the split, only to crater 34% later.

There is some good news though. Both Apple and Tesla shares went on to perform well through the end of 2020, rising 27% and 42% respectively.

And Jim Cramer said Monday that the current stock market correction will end when the biggest tech stocks finally roll over. Nvidia is the biggest semiconductor company in the United States by market capitalization.

Traders should get ready to sell Nvidia this week even if it is for just a few weeks. 

Is Nvidia Stock a Buy Now After the 4-for-1 Stock Split? | The Motley Fool

Motley Fool 20 July, 2021 - 10:00am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Nvidia (NASDAQ:NVDA) will be executing a 4-for-1 stock split, and shares are expected to start trading on a split-adjusted basis on July 20. The stock closed at $751.19 on July 19 with a $468 billion market cap. The price-to-earnings ratio was 89, based on a $751 share price. The company had blowout earnings last quarter, reporting over 88% year-over-year revenue growth and a 33.77% net profit margin. The share price ran to a high of $835 before pulling back. Is Nvidia stock a buy now? 

It's easy to see why some investors would shy away from Nvidia at these levels. The stock price has delivered nearly 5,000% returns over the past decade. A $10,000 investment would be worth approximately half a million dollars today. But the company is firing on all cylinders, and when you look under the hood, you will find that its future looks very bright, which can arguably justify the premium share price. One key risk to note is that Nvidia is attempting to acquire ARM Holdings from SoftBank (OTC:SFTB.Y) and has bumped into regulatory pushback. With that said, Nvidia partners with ARM, and they should do fine regardless. Nvidia has its hands in gaming, cloud data centers, cryptocurrency, machine learning, artificial intelligence (AI), professional visualization, electric vehicles (EVs), autonomous driving, 5G, and more!

Of course, you do not own more of Nvidia because of the stock split. If you cut a pizza into four slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts, and I think the company looks attractive here as a long-term investment.

In the video I break down the key fundamental highlights that will power Nvidia over the next decade. I'll also chart out Nvidia's technicals and provide an opinion on where I think the stock price is headed from here. 

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 07/21/2021.

NVDA Stock: 4-For-1 Split Goes Into Effect

Pulse 2.0 20 July, 2021 - 06:21am

NVIDIA Corporation (NASDAQ: NVDA) had announced a 4-for-1 stock split back in May and it goes into effect today. The company’s board of directors had declared the stock split of NVIDIA’s common stock in the form of a stock dividend to make stock ownership more accessible to investors and employees.

The stock dividend was conditioned on obtaining stockholder approval at the company’s 2021 Annual Meeting of Stockholders — which was held virtually on Thursday, June 3, at 11 a.m. PT. This increased the number of authorized shares of common stock to 4 billion shares.

Each NVIDIA stockholder of record at the close of business on June 21, 2021 will receive a dividend of three additional shares of common stock for every share held on the record date — which was distributed after the close of trading yesterday. 

Nvidia stock

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