NVIDIA Set For Stock Split (NVDA, AMD)

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On Tuesday morning, September 11, 2007, shares of NVIDIA Corp. (NASDAQ:NVDA) will trade on an ex-split basis to reflect its 3-for-2 stock split that it declared on August 9. 

Shares are down today with a crummy stock market and after National Semi numbers and Xilinx guidance.  But up until today shares had been on a tear and traded as high as $54.00 just on Wednesday.  On August 10, shares closed at $43.99 and they closed as low as $42.57 on August 16.  It also now has its earnings behind us as well.

Shares often trade up going into a stock split, but in less than one-month shares saw roughly a 30% gain in only three different weeks.  It was as if you just HAD to own it. The drop today takes it almost 7% off of highs and almost 4% off of the recent high close.

As a reminder, both NVIDIA and Advanced Micro Devices’ (NYSE:AMD) ATIunit are both within about 60 days of now for their graphic chipsets.There are mixed reports and this may just boil down to preference oropinion, but most have commented that NVIDIA still has the advantage.

NVIDIA now has a market cap of $18.4 Billion after shares have risen well over 300% in the last 5-years and are still up roughly 150% since the start of 2006.  This will mark its second stock split in the 5-years since splitting in early 2006.  This also split twice between 2000 and 2002.  Shares are also close to most analyst price targets, although official ratings remain positive.

Jon C. Ogg
September 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.