Nvidia, the red-hot semiconductor company, has announced a significant move that will impact its stock prices. The company has declared a 10-for-1 stock split, making it more accessible for individual investors to buy shares in the company.

Five years ago, Nvidia’s stock was priced at less than $50 per share. Fast forward to today, the stock has surged over 2,500%, with a single share valued at $949.50 as of the latest trading day.

The stock split, revealed in Nvidia’s quarterly earnings report, means that each common share will be divided into 10 smaller shares, effectively reducing the cost of investing in the company. This move comes on the heels of Nvidia’s impressive financial performance, with a 262% increase in revenue and a 462% surge in profits year-over-year.

Post-split shares of Nvidia are set to commence trading on June 10, at a time when the company’s stock has been on a bullish run, driven by investor optimism surrounding its AI capabilities. Nvidia is a key player in the AI sector, renowned for producing processors that power artificial intelligence systems, including generative AI technology.

The company’s stock price surge has positioned Nvidia as a significant player in the market, reflecting the broader AI boom that has fueled recent market gains. Nvidia’s ability to surpass Wall Street’s sales growth forecasts underscores its pivotal role in the tech landscape, particularly in AI development.

Despite facing competition from in-house AI chips by tech giants like Amazon and Alphabet, as well as challenges from US export restrictions on advanced AI chips to China, Nvidia’s strong financial performance continues to impress analysts. The company’s consistent earnings growth aligns with the ongoing investments by major tech players in AI infrastructure, further solidifying Nvidia’s position in the market.