Nvidia says nations interested in building their own 'sovereign AI' are among the customers driving demand for its chips
AFP

Nvidia revealed a 10-for-1 stock split on Wednesday, aimed at making its high-priced shares more affordable for individual investors. The stock, which was under $50 five years ago, has surged over 2,500%, closing at $949.50 on Wednesday.

This announcement came alongside Nvidia's quarterly earnings report, showcasing a 262% increase in revenue and a 462% rise in profits year-over-year, CNN reported. Following the news, Nvidia shares rose by 4% in after-hours trading. The post-split shares will start trading on June 10.

Nvidia's growth is driven by high demand for its AI chips, which are crucial for generative AI systems. Despite competition from companies like Amazon and Alphabet, Nvidia remains dominant in the AI chip market.

Analysts were not surprised by the strong earnings, citing massive investments in AI infrastructure by tech giants such as Microsoft, Meta, and Alphabet. Nvidia expects a 107% revenue increase year-over-year for the current quarter, indicating continued strong performance.