Are billionaires investing in Nvidia ahead of a 10-for-1 stock split?

Money pulls money. So it’s no surprise that some of the world’s wealthiest investors own stocks. nvidia (NVDA 1.25%). The company is making money thanks to the surge in demand for artificial intelligence (AI) chips.

Nvidia는 금요일 거래 마감 후 10:1 주식 분할을 실시할 예정이므로 월요일에는 훨씬 낮은 가격으로 주식이 거래되기 시작합니다. Are billionaire investors buying up Nvidia stock ahead of an impending stock split?

Do not rely on it

The truth is, it’s not clear if billionaires are buying Nvidia stock. The last regulatory disclosure revealing its holdings as of the end of the first quarter of 2024 came a few weeks ago. 한 명 이상의 억만장자 투자자가 최근 Nvidia를 인수했다고 공개적으로 언급하지 않는 한, 그들이 그래픽 처리 장치(GPU) 제조업체에 지분을 추가했는지 여부를 알아내기까지는 아마도 몇 달 정도 더 걸릴 것입니다.

But based on activity in the first quarter, you shouldn’t expect billionaires to buy Nvidia ahead of the stock split. Several super-rich investors significantly reduced their holdings in the first three months of the year.

For example, Citadel founder Ken Griffin reduced his hedge fund position in Nvidia by nearly 68% in the first quarter. David Tepper sold 44% of Appaloosa’s Nvidia stock last quarter. Stanley Druckenmiler reduced the Duquesne Family Office’s stake in Nvidia by 71.5%.

이들 투자자들은 Nvidia의 주식 분할이 사업의 기본 원칙을 결코 바꾸지 않는다는 것을 충분히 이해하고 있습니다. A stock split is like cutting an 8-slice pizza into 16 slices. You still have the same amount of pizza with the same toppings. The pieces are just smaller.

Billionaires also know that the impact of stock splits has changed as fractional stock trading becomes more widespread. Many brokerage companies now allow customers to buy and sell partial stocks, so most investors who want to add NVIDIA to the portfolio have been able to do so regardless of the high stock price.

Probably sure

Perhaps the larger result is that the stock can be added to the stock division due to the division of NVIDIA. Dow Jones Industrial Average Index In the near future. The main factor preventing Nvidia from being included in the Dow was its high stock price. 몇몇 억만장자들이 엔비디아가 지수에 포함될 경우 다우지수를 매수하는 상장지수펀드(ETF)와 뮤추얼 펀드를 예상하여 헤지펀드의 엔비디아 지분을 늘렸다고 해도 놀랄 일이 아닐 것입니다.

I think ultra-wealthy investors might be buying Nvidia now for reasons unrelated to the upcoming stock split. The company announced stellar first-quarter results two weeks ago. The quarterly update could spur some billionaires who had trimmed their stock positions to resume buying.

In particular, NVIDIA’s optimism on the demand for the upcoming Blackwell platform was able to rebuild wealthy investors. Blackwell will be the most powerful architecture of the company for AI chips.

Should be you Would you like to load NVIDIA stocks?

Is it important for billionaire investors to do with NVIDIA? no way. The more important questions are: you Would you like to load NVIDIA stocks? The answer to this question depends on your investment style.

Income investors will definitely want to find out elsewhere. NVIDIA pays dividends, but the leading yield is 0.0035%.

Risk-averse investors may find other stocks they prefer better. Nvidia is priced at a premium according to some valuation metrics due to its tremendous growth prospects. However, much of the expected growth is already reflected in the stock price. If it does not materialize, stock prices may plummet.

However, Nvidia is a great choice for growth investors willing to take some risk. Maybe the upcoming stock split could provide a big catalyst. Maybe not. Either way, Nvidia’s continued innovation should keep it at the forefront of the AI ​​chip market.