Nvidia (NVDA) executed a 10-for-1 stock split, with shares opening at around $120. TECHnalysis Research President & Chief Analyst Bob O’Donnell joins Morning Brief to break down the significance of the split and how investors are reacting.
"The beauty of a 10-for-1 split like this is that the average person who couldn’t afford that Nvidia stock can obviously jump in," O’Donnell says. He adds that the split provides an opportunity for more investors too jump into the AI play.
While Nvidia has been a success story, he believes that the road ahead isn’t particularly smooth. O’Donnell says that the competition will heat up, with more companies being willing to try alternatives in order to give them some leverage when working with Nvidia. Secondly, he notes that with the sheer size of the company, there may be some regulatory concerns. Finally, he explains that a major challenge will face Nvidia if generative AI changes and its chips are no longer needed.
#news #youtube #Nvidia
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