Nvidia (NVDA +3.04%) was unstoppable last year, when it added over $2 trillion to its market cap. Along the way, it split its stock for the second time this decade and the sixth time overall since going public in 1999.
Companies often outperform the market after splitting their stock, and that was the case for Nvidia after its most recent stock split. But the tech giant has slowed down quite a bit in 2025. It has been volatile, like many major tech stocks, and its share price is down 3% year-to-date at the time of this writing.
Is another stock split in the cards to boost Nvidia's share price? Here's what to expect and a look at Nvidia's recent results.
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Don't expect another Nvidia stock split anytime soon
I won't keep you in suspense -- I highly doubt Nvidia will split its stock in 2025 or 2026. The primary benefit of a stock split is that it lowers a company's share price, which makes investing in that company seem more affordable. "Seem" is the operative word here. The number of outstanding shares increases, but the company's overall value doesn't.
If a company is trading for $1,000 or $2,000, some investors will likely think twice about investing because of how much it costs to buy in. It's not a huge barrier, now that many brokers let investors buy fractional shares, but a lower share price can help increase the appeal of a stock.
NASDAQ: NVDA
Key Data Points
After Nvidia's 10-for-1 stock split on June 10, 2024, it went from a share price of $1,208.88 to $120.88. For new investors, especially those on a budget, it's much easier to buy a stock for $120 than for $1,200.
Nvidia's value has gone up by 10.2% since its stock split. Since the share price has only changed a relatively small amount, another stock split doesn't serve much of a purpose.
Nvidia's recent financial results
Nvidia has been one of the biggest winners as tech companies have increased spending on artificial intelligence (AI). Revenue has grown for eight consecutive quarters, and by a sizable amount -- it reported $130.5 billion in revenue for its 2025 fiscal year, up 114% year over year.
About 88% of that revenue comes from data centers and the graphics processing units (GPUs) that Nvidia develops for them. While data centers now make up a dominant portion of Nvidia's business, it's also a leader in gaming GPUs and reported $11.4 billion in revenue from that segment during its 2025 fiscal year.
In addition to its revenue growth, Nvidia is a highly profitable company. Gross margin for the 2025 fiscal year was an impressive 75%, and its net income of $72.9 billion was a 145% year-over-year increase.
Nvidia has its next quarterly earnings report on May 28, and it has consistently surpassed analysts' expectations in recent years. There may not be a stock split on the horizon, but a positive earnings report is even better. Most importantly, Nvidia is doing well financially because of the strength of its business.
Nvidia should continue to be a strong tech investment
Demand for GPUs has skyrocketed since the release of OpenAI's ChatGPT in November 2022. Nvidia is the leading GPU company, including gaming GPUs and the most advanced AI GPUs. The global GPU market is projected to keep growing, with Arizton Advisory & Intelligence estimating it will go from $70 billion in 2024 to $237.5 billion in 2030. Given Nvidia's dominant position, it will almost certainly take a large slice of the market's growth.
The biggest challenge Nvidia is currently facing is the effect of tariffs and a potential U.S.-China trade war. It already reported that it will take a special charge of about $5.5 billion this quarter for exporting H20 processors to China and other locations. And Nvidia manufactures its products in countries that were hit with high tariff rates, although they've been lowered for the time being.
In response to the tariff announcement, Nvidia announced plans to invest $500 billion in AI infrastructure in the U.S. within the next four years. These plants will produce Nvidia AI supercomputers entirely in the U.S. Tariffs could be a headwind in the short term, but Nvidia should be able to navigate them, and there's always the possibility of a trade deal.
Stock splits may get investor attention, but a company's financial results and long-term growth prospects are what really matter. Those are two areas where Nvidia shines. I wouldn't expect a repeat of its 2024 results, but I think it's one of the better tech stocks and will continue to outperform the market.
