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Nvidia Shares Jump After Chipmaker Announces 4-for-1 Stock Split

Semiconductor maker Nvidia announces a 4-for-1 stock split.
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Nvidia  (NVDA) - Get Report shares rose Friday after the semiconductor maker announced a 4-for-1 stock split to make it easier for employees and outside investors to buy shares.

If shareholders approve the plan - a virtual certainty - each Nvidia stockholder of record June 21, will receive a dividend of three additional common shares for every share held. The new shares are set to be distributed after the close of trading on July 19.

Nvidia traded Friday at $603.31, up 3.22%. It has jumped 68% over the past year, thanks to its impressive business performance. But it has eased 0.4% over the past month amid a global chip shortage.

Meanwhile, Nvidia’s May 26 earnings report should show strength, said Oppenheimer analysts. They cited strong activity in cryptocurrencies and gaming as catalysts.

The analysts kept their outperform rating and $700 price target.

Nvidia will be reporting quarterly earnings next week.

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TheStreet's founder Jim Cramer is discussing the stock split Friday.

Earlier this month, Baird analyst Tristan Gerra initiated coverage of Nvidia with an outperform rating and $800 price target.

“Nvidia is poised to dominate [artificial intelligence] computing, the most transformational technology of our era,” he wrote in a commentary.

“Nvidia's data-center revenue has grown to nearly 30% of Intel's  (INTC) - Get Report platform revenue in just a few years,” the analyst said.

The barriers to entry into Nvidia's businesses are “the highest and longest-lasting within the semiconductor industry,” Gerra said.

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