Ian Cooper’s Stock Pick of the Week

Chart of Day:  Nvidia (NVDA)

Shares of Nvidia (NVDA) will soon trade at a tenth of its current price tag.

In a week, Nvidia will split its shares 10:1 – its second split in 10 years – on Friday June 7. By that Monday, shareholders of record will receive nine new shares for every one share held.

It’ll make one of the most sought-after stocks far cheaper for retail investors.

Post-split, we don’t expect for the stock to stay down for long. In fact, with the artificial intelligence boom and powerful earnings fueling momentum, NVDA could easily run right back to $1,000 in a few months.

According to Bank of America analysts, stock splits are typically bullish for companies that enact them. On average, returns one-year post-split are 25%, compared to around 12% for the broader market, as noted by Investing.com.

 

Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies

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