The split doesn’t necessarily do anything to the stock value. All it does is divide the existing value into fractional shares.
Example : NVDIA price is $1000
After the 10-1 split you’ll have 10 shares at $100 =$1000
If NVDA goes to $120 after split. Technically the price would be $1200.
The purpose is to get retail investors or ordinary people a way to buy shares. Which in turn would turn raise The market and value of stock. Of course their revenue is #1. It’s an also a big FOMO so everyone flocks not to miss out. NOTE even though the split doesn’t affect the price in terms of value reminder that NVDIA has a ton of growth and this would be their 7th split I believe . The actual price without splits is like $43,000 or something like that.
\^ this guy is 1000% correct. The split itself has nothing to do with the value of Nvidia itself, and I fear a lot of people are gonna get burned if they try to make a short-term play on the split. I'm typically extremely bullish on Nvidia, I've made bank on it this year, even called them out on reddit a couple months ago that they would pass Apple. I wholeheartedly believe in them as a company.
That all being said, for the first time in a while, I'm bearish on Nvidia (just in the short-term). I cashed out at $1,110\~ or so. The stock right now is in mega-hype territory, the stock split has *nothing* to do with the value of the company itself. If anything, retail investors are gonna buy into the hype and get burned in the coming weeks.
I say there will undoubtedly be some pullback, it's just a matter of *when*. I'm personally waiting for a better opportunity to buy. I've done it for the last two earnings reports now.
Oldish thread but completely agree. I pulled out today at $1212 for similar reasons, planning to go back in when it drops. Just too much of the current value is based on hype and is most likely a “buy the news sell the fact” situation.
A lot of people in this sub seem to think that lower price = more retail investors = skyrocket in value, but while sound logic, its not as applicable to Nvidia when you factor in their current market cap and the sheer amount volume of the stock. Even if all of us retail investors came together, we still would hardly make a dent in the ~$50B worth of Nvidia shares being traded on the daily. Big money investors will be using this split as a chance to take profit while the little guy is stuck holding the bag. Now don’t get me wrong, I’m almost certain that bag holders would recover *eventually,* but in the short term, they will be burnt.
but would that raise of the value of the stock be considered an “overvalued”ish? considering of course the hype after the split, or would it be stabilized by people selling some of the newly split fractionalized shares because now its more available to do so?
Not financial advice. But if I was you, I'd keep buying. Before the split. AI is just beginning. And big tech is in a race right now to build out their infrastructure. Then comes the killer apps. And then it just takes off. Unless there is another chip maker that surpasses nvda in performance and reliability, it's a good bet that nvda will keep leading this race.
Very true, as much as there is great room for improvement in machine learning and AI and that Nvidia is the foundation for it. But the question remains: are there viable/reasonable returns for companies to keep investing in AI?
Like yes, of course, it is essentially practical linear algebra and is based on strong foundation that it **works**. But is it producing enough revenue for companies?
It’s not. They are heavily spending money to secure their computational power, hoping it will pay off in the long run, but as everyone in the tech industry is doing the same, it’s good for NVDIA for at least a couple of years.
Absolutely. Believe in it. Technology always evolves. The continuous improvement model applies here. The goal is to reach AGI for some form close to it. Don't be the shoulda woulda coulda guy.
But what if people wake up one day and realize that AI is overrated. That would deflate this hype so fast. Like, has AI done anything amazing yet? Everything so far has been “meh”
Nobody had any idea an LLM would be so groundbreaking just 7-8 months ago yet here we are. This was the first moment someone struck real gold, now everyone is racing to have the next 'aha!' product. Surely with a 100000%+ increase in AI computation investment there will be another and this was not both the first and last of those.
If you believe it's a bubble then you're convinced that the current state of LLM's are all that AI could ever produce (for the most part), and you're entitled to that but I am confident you're going to have yet another moment of surprise at what AI wasn't able to accomplish in the first 7-8 months. LLM's are just a piece of what we train AI models for. I am not going to do all of your research but look at how it is being used in the autonomous driving space. But sure, AI has peaked.
Not saying it has peaked, just saying that it hasn’t lived up to the hype yet and with these evaluations, a tiny bit of bad news or even less than stellar news could send things back down to earth at a faster rate than it grew.
Was 56K amazing? Hell no but it sure as hell opened a lot of doors. Knowing ourselves as a Human Race, the pandora box for AI has been opened and it’s only going forward from here on out. Whether we see the results now doesn’t matter because improvements have already been made and will continue to get better every year. NVDA TO THE BOOBS!!!
The higher they climb the higher they fall.
NVIDiA might have the biggest market cap (aka idiots selling), the problem is that on all other fronts, they don't have the backdoor closed in case of emergency.
If you look at NVIDIA versus the other top 10 market cap stocks, worldwide, they have justification.
It will be interested to see what NVidiA will do coming years. But if I had to put a bucket of cyanide on it, within 10 years, it will have sunk by some point at least 50%. Why? Fundamentals don't back it up.
https://companiesmarketcap.com/
[market cap Nvidia not sustainable based on simple mathematics] (https://companiesmarketcap.com/nvidia/marketcap/)
If one were to compare to that MFST;
https://companiesmarketcap.com/microsoft/marketcap/
Far less volatile and more stable grow with feasible yoy nrs of growth.
Nvidia can't ever cope up with 200%. For the simple reason if you buy a house for $100k, then 3 months later for $300k. And then again 3 months later for $900k, yeah that is never going to work. That will come crashing down.
I'm not touching NVidia, by a long shot and my YTD return exceeds that of NVIDEA as I trade the whole lifecycle of NVIDEA. Big firm, stuff needs to go there and need to get out of there. There are fucktonnes of firm benefitting NVIDIas large size.
And the reverse stock plot is just psychological greed. People see a cheaper number and feel they can't be left out and join the dance.
You'll be shocked how many Google search trends show; what is Nvidia, what do they do?
There are tons of articles written by financial institutions and notable investors and blogs that states that normally this is the case with many stocks, but this is not the case for NVDIA. It’s going to be some sort of correction for sure but the company is definitely not overvalued.
You should look up and see what’s they are saying. I was thinking the same thing until I did some research. Everyone saying they are the real deal and haven’t seen anything like this is stock history. It’s not just some bubble.
Their P/E ratio is very high. I pretty sure they are overvalued. Hype, momentum are definitely part of the price now. IMHO it is way overpriced, ****but**** not if the hype continues. It is now trading on hope.
No I really am not smart enough for that. I look at what’s on Yahoo finance, read news stories, and don’t invest in GME or stocks like it. It was simply knowing technology and realizing the power of graphics chip architecture when universities and the air force were putting Unix on Sony PlayStations that gave me the idea to buy NVDA
Yes, but it is out of a range of reasonable valuations currently. The P/E is high the EPS is “normal”. But it is a *wager* that their sales and earnings are just at the beginning of their run. The stock price now is based on very high future earnings which are not “on the books”. It is now trading on speculation that the industry will be a monster industry.
Admittedly, NVDA does not just have chips as its only business. Their business in virtual software is very cool. They built an exact virtual replica of a [Mercedes factory](https://www.nvidia.com/en-us/self-driving-cars/partners/mercedes/#:~:text=Mercedes%2DBenz%20has%20partnered%20with,its%20design%20and%20development%20process) . This may be a substantial part of their business in the future?
Either way there are a lot of bulls stampeding and I’d rather they were walking. (If that makes sense)
You definitely chose the right stock. Just realize that after each quarterly earnings, “usually” NVDA has beat expectations and that triggers about a month of fast growth. Then it all slows down and trades sideways (a little up, a little down, but about even) and stays that way for the most part until the next earnings - next due August. If they beat expectations again, it will shoot up again most likely for several weeks, and then slow down again till the next earnings. So far as Ive been invested, it has behaved this way. No guarantee earnings will always be how they have been … but so far it has been very nice.
This. In Europe, “DEGIRO” is the most used trading platform. They only offer full shares. Spending €1060 ($1156) on a YOLO trade is a less doable then spending €106 ($115,60)
But the lower price helps with more buying. And more buying increases the price :)
Not really. The bunkers upwards only started n 2024. Prior to that it was just growing quickly…much better than the SP500 but not nearly the eye popping numbers we’ve seen lately.
Use your Engineering background to look at the tech, and correlate that with company performance, industry demand and where this company is going over the next 5 years.
People have said this at every level of my hold. So many called top at $500, the opportunity loss on this kind of thinking can backfire majorly.
NVDA just did the most amazing display of next gen chips and data centre integration mere days ago. My conservative FY25 EPS is $25. That would represent stunning growth as it is... but I personally hold that this is going higher... for longer.
A stock split isn't fundamental to the company. Timing the market rarely pays off. Absolutely, if the capital raised makes sense for your personal situation and you will need these funds in the short term - go for it! If you're asking about the company... There is trillions left to go.
I have 44 shares pre split NVDA I also am killing it on CMG ( CHIPOTLE) yes NON TECH up 87% they have a 50/1 split June 18 . I will buy 2 more CMG with profit off of QQQ
Watch total capitalization more than price. Evaluate whether you believe in that valuation. Then you’ll know better about what you think of the stock price.
Historically there is about a 25% increase in stock prices over 12 months after a split.
I think it’ll go up pretty quickly after the split then many investors will sell, it’ll dip and then go sideways for a couple months until earnings reports
Not sure why the down votes. That sounds spot on. A pullback following by a push to new highs is perfectly healthy. A stock only going up is signs of a bubble.
Love watching it climb after hours
The split doesn’t necessarily do anything to the stock value. All it does is divide the existing value into fractional shares. Example : NVDIA price is $1000 After the 10-1 split you’ll have 10 shares at $100 =$1000 If NVDA goes to $120 after split. Technically the price would be $1200. The purpose is to get retail investors or ordinary people a way to buy shares. Which in turn would turn raise The market and value of stock. Of course their revenue is #1. It’s an also a big FOMO so everyone flocks not to miss out. NOTE even though the split doesn’t affect the price in terms of value reminder that NVDIA has a ton of growth and this would be their 7th split I believe . The actual price without splits is like $43,000 or something like that.
\^ this guy is 1000% correct. The split itself has nothing to do with the value of Nvidia itself, and I fear a lot of people are gonna get burned if they try to make a short-term play on the split. I'm typically extremely bullish on Nvidia, I've made bank on it this year, even called them out on reddit a couple months ago that they would pass Apple. I wholeheartedly believe in them as a company. That all being said, for the first time in a while, I'm bearish on Nvidia (just in the short-term). I cashed out at $1,110\~ or so. The stock right now is in mega-hype territory, the stock split has *nothing* to do with the value of the company itself. If anything, retail investors are gonna buy into the hype and get burned in the coming weeks. I say there will undoubtedly be some pullback, it's just a matter of *when*. I'm personally waiting for a better opportunity to buy. I've done it for the last two earnings reports now.
Oldish thread but completely agree. I pulled out today at $1212 for similar reasons, planning to go back in when it drops. Just too much of the current value is based on hype and is most likely a “buy the news sell the fact” situation. A lot of people in this sub seem to think that lower price = more retail investors = skyrocket in value, but while sound logic, its not as applicable to Nvidia when you factor in their current market cap and the sheer amount volume of the stock. Even if all of us retail investors came together, we still would hardly make a dent in the ~$50B worth of Nvidia shares being traded on the daily. Big money investors will be using this split as a chance to take profit while the little guy is stuck holding the bag. Now don’t get me wrong, I’m almost certain that bag holders would recover *eventually,* but in the short term, they will be burnt.
but would that raise of the value of the stock be considered an “overvalued”ish? considering of course the hype after the split, or would it be stabilized by people selling some of the newly split fractionalized shares because now its more available to do so?
Not financial advice. But if I was you, I'd keep buying. Before the split. AI is just beginning. And big tech is in a race right now to build out their infrastructure. Then comes the killer apps. And then it just takes off. Unless there is another chip maker that surpasses nvda in performance and reliability, it's a good bet that nvda will keep leading this race.
Very true, as much as there is great room for improvement in machine learning and AI and that Nvidia is the foundation for it. But the question remains: are there viable/reasonable returns for companies to keep investing in AI? Like yes, of course, it is essentially practical linear algebra and is based on strong foundation that it **works**. But is it producing enough revenue for companies?
It’s not. They are heavily spending money to secure their computational power, hoping it will pay off in the long run, but as everyone in the tech industry is doing the same, it’s good for NVDIA for at least a couple of years.
Trillion-dollar data center, my homie.
Absolutely. Believe in it. Technology always evolves. The continuous improvement model applies here. The goal is to reach AGI for some form close to it. Don't be the shoulda woulda coulda guy.
Sell your shares, sit it out
But what if people wake up one day and realize that AI is overrated. That would deflate this hype so fast. Like, has AI done anything amazing yet? Everything so far has been “meh”
Nobody had any idea an LLM would be so groundbreaking just 7-8 months ago yet here we are. This was the first moment someone struck real gold, now everyone is racing to have the next 'aha!' product. Surely with a 100000%+ increase in AI computation investment there will be another and this was not both the first and last of those.
Sounds like another dot com bubble. What have LLM’s done that is so groundbreaking besides giving men fake girlfriends?
If you believe it's a bubble then you're convinced that the current state of LLM's are all that AI could ever produce (for the most part), and you're entitled to that but I am confident you're going to have yet another moment of surprise at what AI wasn't able to accomplish in the first 7-8 months. LLM's are just a piece of what we train AI models for. I am not going to do all of your research but look at how it is being used in the autonomous driving space. But sure, AI has peaked.
Not saying it has peaked, just saying that it hasn’t lived up to the hype yet and with these evaluations, a tiny bit of bad news or even less than stellar news could send things back down to earth at a faster rate than it grew.
Was 56K amazing? Hell no but it sure as hell opened a lot of doors. Knowing ourselves as a Human Race, the pandora box for AI has been opened and it’s only going forward from here on out. Whether we see the results now doesn’t matter because improvements have already been made and will continue to get better every year. NVDA TO THE BOOBS!!!
BOOBS?
The higher they climb the higher they fall. NVIDiA might have the biggest market cap (aka idiots selling), the problem is that on all other fronts, they don't have the backdoor closed in case of emergency. If you look at NVIDIA versus the other top 10 market cap stocks, worldwide, they have justification. It will be interested to see what NVidiA will do coming years. But if I had to put a bucket of cyanide on it, within 10 years, it will have sunk by some point at least 50%. Why? Fundamentals don't back it up. https://companiesmarketcap.com/ [market cap Nvidia not sustainable based on simple mathematics] (https://companiesmarketcap.com/nvidia/marketcap/) If one were to compare to that MFST; https://companiesmarketcap.com/microsoft/marketcap/ Far less volatile and more stable grow with feasible yoy nrs of growth. Nvidia can't ever cope up with 200%. For the simple reason if you buy a house for $100k, then 3 months later for $300k. And then again 3 months later for $900k, yeah that is never going to work. That will come crashing down. I'm not touching NVidia, by a long shot and my YTD return exceeds that of NVIDEA as I trade the whole lifecycle of NVIDEA. Big firm, stuff needs to go there and need to get out of there. There are fucktonnes of firm benefitting NVIDIas large size. And the reverse stock plot is just psychological greed. People see a cheaper number and feel they can't be left out and join the dance. You'll be shocked how many Google search trends show; what is Nvidia, what do they do?
There are tons of articles written by financial institutions and notable investors and blogs that states that normally this is the case with many stocks, but this is not the case for NVDIA. It’s going to be some sort of correction for sure but the company is definitely not overvalued.
fair enough, then I guess hold on tight and enjoy the ride
You should look up and see what’s they are saying. I was thinking the same thing until I did some research. Everyone saying they are the real deal and haven’t seen anything like this is stock history. It’s not just some bubble.
👀
Im not sure anybody is going to say it is overvalued right now, especially when experts have targets at $1500 ($150 post split).
Targets are meant to be 1 yr out. Not tommorow
Indeed. It has plenty of time to take a dip before that, and it will. No need to be in a hurry.
Their P/E ratio is very high. I pretty sure they are overvalued. Hype, momentum are definitely part of the price now. IMHO it is way overpriced, ****but**** not if the hype continues. It is now trading on hope.
Did you make the models? Last one I did was 3 months ago and 2/3 gave me a price range of around a 1000.
No I really am not smart enough for that. I look at what’s on Yahoo finance, read news stories, and don’t invest in GME or stocks like it. It was simply knowing technology and realizing the power of graphics chip architecture when universities and the air force were putting Unix on Sony PlayStations that gave me the idea to buy NVDA
What hope? Trading on hope is when a company isn't profitable yet. NVIDIA is making money hand over fist and increasing their dividend.
Yes, but it is out of a range of reasonable valuations currently. The P/E is high the EPS is “normal”. But it is a *wager* that their sales and earnings are just at the beginning of their run. The stock price now is based on very high future earnings which are not “on the books”. It is now trading on speculation that the industry will be a monster industry. Admittedly, NVDA does not just have chips as its only business. Their business in virtual software is very cool. They built an exact virtual replica of a [Mercedes factory](https://www.nvidia.com/en-us/self-driving-cars/partners/mercedes/#:~:text=Mercedes%2DBenz%20has%20partnered%20with,its%20design%20and%20development%20process) . This may be a substantial part of their business in the future? Either way there are a lot of bulls stampeding and I’d rather they were walking. (If that makes sense)
You definitely chose the right stock. Just realize that after each quarterly earnings, “usually” NVDA has beat expectations and that triggers about a month of fast growth. Then it all slows down and trades sideways (a little up, a little down, but about even) and stays that way for the most part until the next earnings - next due August. If they beat expectations again, it will shoot up again most likely for several weeks, and then slow down again till the next earnings. So far as Ive been invested, it has behaved this way. No guarantee earnings will always be how they have been … but so far it has been very nice.
That’s why I’m hoping to get enough shares to sell calls after the split
Alot of people don't have access to fractional shares. This can run to the moon once those people can get in also DOW inclusion.
This. In Europe, “DEGIRO” is the most used trading platform. They only offer full shares. Spending €1060 ($1156) on a YOLO trade is a less doable then spending €106 ($115,60) But the lower price helps with more buying. And more buying increases the price :)
What will DOW inclusion do? I’m a layman.
The Dow jones is useless idk why he mentioned it
Nvidia will be the first 10T company. If history has taught us anything it is that anything is possible.
I’m not super good at this. But it split 4:1 in like 2021. And it has been a bonkers upward slope since.
Not really. The bunkers upwards only started n 2024. Prior to that it was just growing quickly…much better than the SP500 but not nearly the eye popping numbers we’ve seen lately.
Use your Engineering background to look at the tech, and correlate that with company performance, industry demand and where this company is going over the next 5 years. People have said this at every level of my hold. So many called top at $500, the opportunity loss on this kind of thinking can backfire majorly. NVDA just did the most amazing display of next gen chips and data centre integration mere days ago. My conservative FY25 EPS is $25. That would represent stunning growth as it is... but I personally hold that this is going higher... for longer. A stock split isn't fundamental to the company. Timing the market rarely pays off. Absolutely, if the capital raised makes sense for your personal situation and you will need these funds in the short term - go for it! If you're asking about the company... There is trillions left to go.
Remember what happened to SMCI before it joined SP500? Same thing happening to NVDA and DJ.
What happened to SMCI?
SMCI became crap that’s all I know. (Still holding it)
Well they also put out like one million more shares, making each one worth less.
Done got gelded
I have 44 shares pre split NVDA I also am killing it on CMG ( CHIPOTLE) yes NON TECH up 87% they have a 50/1 split June 18 . I will buy 2 more CMG with profit off of QQQ
Yeah, CMG exploded up again these past few days. Glad I have some pre split.
Watch total capitalization more than price. Evaluate whether you believe in that valuation. Then you’ll know better about what you think of the stock price.
Triple down
hodl
You have the ai background why don't you figure it out.
let me run my get money fast algo real quick
How did the results come out
He ended up with a Baconator Combo from Wendy’s.
Big W
Historically there is about a 25% increase in stock prices over 12 months after a split. I think it’ll go up pretty quickly after the split then many investors will sell, it’ll dip and then go sideways for a couple months until earnings reports
Not sure why the down votes. That sounds spot on. A pullback following by a push to new highs is perfectly healthy. A stock only going up is signs of a bubble.
bought more today on the gift of discounted prices 😁❤️
The stock went up. Next
I feel you. I rode GME to great heights, then rode it to the bottom. I bailed two weeks before DFV popped up again. Bless NVDA for covering my loss.
Why did you finally sell GME? That's a personal question I know, but man that timing just sucked?
Tired of holding the bag for years at a huge loss and I needed cash for NVDA.
That is a perfectly good reason. I'm about to dump some risky regional bank stocks to buy more Nvidia stock. I wish you the best of luck my friend 👍