Nvidia will split its stock 1:10 this Friday.
The specific time of the split has not been determined, and it may be after the close of trading on Friday.
We have already talked about the changes related to the stock split last weekend. Here we will talk about the impact on the AI sector.
First, let’s talk about what the split brings: increased market liquidity, lowered buying thresholds, and short-term sentiment stimulates positive growth.
To put it bluntly, it makes the original unit price of $1,164 in the market become $116, with more circulation, and everyone buys it cheaper. They couldn’t afford it before, but now they can afford it by lowering the price of a single share.
With more circulation, more shareholders, and greater influence, it will also further enhance Nvidia’s momentum, and under the momentum, the market will once again increase its future valuation expectations for Nvidia.
If the stock split is closed on Friday, pay attention to the short-term Sell the news after the stock price surges on Monday next week. This is an inevitable process. As for whether the stock price will fall back, it depends on whether the market sentiment cooperates. To put it bluntly, if there are more people with FOMO, Sell the news will also be digested.
Impact on the AI sector of the stock market:
After this split, NVIDIA will increase the number of shareholders and market liquidity. As long as there are no unexpected situations during the period, the market will basically increase NVIDIA's future valuation expectations again. Although NVIDIA's current P/E ratio has reached 67 and its single-share earnings have reached US$17.7, it is still more likely for US stocks.
At the same time, after this battle, NVIDIA will impact the title of the world's number one corporate market value. Currently, Microsoft has a market value of 3.09 trillion, and NVIDIA has a market value of 2.86 trillion, with a gap of 220 billion. If everything goes well, NVIDIA's stock price will rise by 8%, and we will see this historical moment.
By then, NVIDIA's absolute position in AI will be further consolidated. I have mentioned in an article before that NVIDIA's CUDA ecosystem has led to the dependence of most AI companies in the world. Although they formed an alliance to try to resist, they were still a mess in the end. In comparison, NVIDIA's position is set off to be more powerful.
The big brother can still lead AI to glory with his younger brothers.
Impact on the crypto AI sector:
To put it bluntly, in the current crypto market, both WLD and TAO are considered large-cap projects in the AI sector, but if we really want to talk about their relationship with AI, then the narrative is related to AI, and it is difficult to actually compare them with the technological breakthroughs of AI made by real companies.
To put it bluntly, the AI projects in the current crypto market are still at the conceptual stage. Everyone talks about narratives and plans for the future, but how to implement them in the future is just like talking to you about artificial intelligence 20 years ago. It cannot be said to be unrealistic, but only that practical applications need to be tested in practice.
If Nvidia splits and takes the title of the world's largest company by market value, AI will be pushed to the forefront again. The crypto market will inevitably rise with the tide. Many tokens will take advantage of the heat to do things, whether it is rumored to have cooperation with Nvidia or with certain AI companies, etc. Everyone is competing for "fathers". I won't name or recommend them here. For the current AI sector in the crypto market, I personally feel that the valuation is too high. The possibility of continued rise is not ruled out, but it lacks the time precipitation ability to realize narratives. It is not worth large amounts of funds or heavy positions. If you like AI, you can lay out in batches.
#英伟达 #NVDA
