Tech giant Nvidia made headlines with its recent announcement of a 10-for-1 stock split following a significant surge in its share price driven by the boom in artificial intelligence (AI) technology. The company’s decision to split its stock comes after a remarkable 25-fold increase in its share price over the past five years, solidifying its position as a key player in the AI hardware market.

The stock split, revealed in Nvidia’s fiscal first-quarter earnings report, is set to take effect on June 10, with shares trading on a split-adjusted basis. This move aims to make ownership more accessible to both employees and investors, as each share will become more affordable post-split, potentially appealing to retail investors.

While stock splits don’t alter a company’s financial standing, they can influence investor sentiment positively. Nvidia’s stock closed at $949.50 before the announcement, and with the 10-for-1 split, each share would be priced at $94.95. Shareholders will receive nine additional shares for each share held, distributed after market close on June 7.

Nvidia’s recent financial performance has been impressive, with a 262% revenue surge in the fiscal first quarter compared to the previous year. The company’s pivot from a leading GPU manufacturer for gaming to a key player in AI hardware has been a strategic move that has paid off significantly.

In addition to the stock split, Nvidia also announced an increase in its quarterly cash dividend from 4 cents to 10 cents per share on a pre-split basis, which will be adjusted to a penny per share post-split. The company’s continued growth and innovation in the AI sector have positioned it as a standout performer in the tech industry.

Overall, Nvidia’s stock split reflects its commitment to enhancing shareholder value and expanding accessibility to its shares, further solidifying its position as a top player in the AI-driven technology market.