Nvidia’s 10-for-1 stock split marks a significant milestone for the AI chip leader, making it the company’s first split in almost three years. This move follows a trend among the “Magnificent Seven” tech giants, with five out of seven companies splitting their shares in the past four years, and two, including Nvidia, doing so twice.
The table below illustrates the recent stock splits among the Magnificent Seven:
– Apple: 4-for-1 split on Aug. 28, 2020
– Tesla: 5-for-1 split on Aug. 31, 2020
– Nvidia: 4-for-1 split on July 20, 2021
– Amazon: 20-for-1 split on June 6, 2022
– Alphabet: 20-for-1 split on July 15, 2022
– Tesla: 3-for-1 split on Aug. 24, 2022
– Nvidia: 10-for-1 split on June 7, 2024
Source: Company reports
Interestingly, Microsoft and Meta Platforms have not yet undergone stock splits and are now among the highest-priced stocks within the Magnificent Seven. This raises speculation about whether they will be the next to split their shares.
Microsoft, as the most valuable company globally with a market cap exceeding $3 trillion, has a history of stock splits but hasn’t done so since 2003. With its stock price exceeding $400, a split could help align it better with the Dow Jones Industrial Average.
On the other hand, Meta Platforms, despite never having conducted a stock split, has seen significant appreciation in its share price since going public in 2012. While a split isn’t imminent, recent changes in dividend policy suggest a shift in the company’s approach to shareholder returns.
In DailyBubble’s view, Meta Platforms appears more likely to split its stock next, given its higher share price and more favorable valuation compared to Microsoft. However, there is no certainty, and the decision will likely depend on future market trends.
Before investing in Meta Platforms, it’s essential to consider all factors. While it may not be among the top picks by the Motley Fool Stock Advisor team, historical returns show the potential for significant gains in the long run.
In conclusion, the “Magnificent Seven” Stock Split trend raises curiosity about which company will be next after Nvidia. As the market evolves, investors will be closely watching Microsoft and Meta Platforms for any potential developments.