The $12.7 billion in cash on their books (offset by $7 billion in debt) also affords them room to make smaller acquisitions as well. In fact, NVIDIA’s chips are found in 70% of the world’s supercomputers. In 2019, NVIDIA GPUs were deployed in 97.4% of AI accelerator instances – hardware used to boost processing speeds – at the top four cloud providers: AWS, Google, Alibaba, and Azure. And when it comes to data center chips, NVIDIA absolutely owns the space. However, the company still has a lot going for it. Chinese AI chip startups are also attempting to unseat Nvidia, with a focus on AI edge computing applications. NVDA has significant competition from the like of Intel (INTC), which has been making big investments in AI chips, autonomy, and chip design Google (GOOG), which had introduced its own AI chips just a few years ago and Apple (AAPL), which is designing AI chips for the company’s iconic smartphones. It may be noted that the AI chip market is also one of the most dynamic and competitive industries going. Any decline in the volatile cryptocurrency market is expected to have substantial negative consequences for Nvidia, as Nvidia recently commenced making dedicated chips for mining cryptocurrencies.

In short, Pitzer is concerned about near-term volatility because of a slowdown in the cryptocurrency market. Most recently though, the stock has been closing lower again… thanks in large part to a comment from Credit Suisse analyst John Pitzer. However, the company soon found its footing after a dramatic drop and rallied back. The stock witnessed a sharp sell-off soon after the split. The company said the 4-for-1 stock split would make “NVIDIA stock ownership more accessible to all.”

Since the price of its common stock shares had increased so much in recent years, the split was intended to help increase liquidity and improve equity for employees. Shares of NVIDIA tested a new all-time high level at $818 amid optimism about the company’s future performance in a world hungry for chips.īut, soon after, on July 20, Nvidia completed a 4-to-1 stock split.

This, in turn, led to a rise in demand for Nvidia’s graphics processing units (GPUs) from the computing and gaming segments, as well as from the data center segment. It also drove the shift toward working from home. The global spread of coronavirus and the resulting lockdowns led to a rise in online activity.

Nvda stock split day