Nvidia (NVDA) - Get NVIDIA Corporation Report moved lowerTuesday as shares in the markets hottest chipmaker are set to begin trading on a split-adjusted basis following a spring decision to make them more accessible to individual investors and company employees.
Nvidia told investors in late May that it would execute a four-for-one stock split starting on July 20, a plan that included shareholders of record on June 21 pocketing a 'dividend' of three additional shares after the close of trading last night. Essentially this would alter the composition of an investor's holding from one share at $750 each to four at $187.80 each, but make no change to the Santa Clara, California-based chipmaker's market value, which remains at around $117 billion.
Nvidia shares were marked 1.3% lower from their split-adjusted close in early trading Tuesday to change hands at $185.43 each.
Nvidia shares have gained around 52% so far this year, thanks in part to market share wins in gaming and cryptocurrency mining and its ongoing advances in artificial intelligence and data center chips. Intel (INTC) - Get Intel Corporation (INTC) Report shares, by comparison, have gained just 9.7% so far this year while Advance Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report is down 5.6% and Micron Technology (MU) - Get Micron Technology, Inc. (MU) Report is down 0.8%.
Earlier this spring, Nvidia said revenue from chips used for gaming, which comprise around half of its overall total, rose 106% from last year to $2.76 billion, while sales of its CMP product line - which is only used by cryptocurrency miners - came in at $155 million. Data center revenue was up 79% from last year to $2.05 billion, Nvidia said.
Nvidia said current quarter sales should rise to $6.3 billion, with around $400 million from its CMP product line -- which is only used by cryptocurrency miners -- and more increases from gaming sales, adding it also plans to make headway in its planned acquisition of fellow semiconductor company Arm Ltd, which is facing scrutiny both in the U.S. and abroad.