Stock-Split Watch: Is Nvidia (NVDA) Next?

Looking back on some of the noteworthy stock splits of 2025, like ServiceNow and Netflix, many investors have been searching for clues that may hint at which stocks will split their stocks in 2026. Nvidia (NASDAQ: NVDA) stock, for example, has risen about 78% over the past 18 months as of this writing. Between the semiconductor stock's impressive performance and its continued prominence on investors' radars, many are wondering whether Nvidia will soon split its stock.

The stock's recent rise, however, isn't a guarantee that management is readying for a stock split in the near future, so let's take a closer look at the factors that provide insight into the likelihood that Nvidia will soon appear on the stock split calendar.

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Splitting stock is familiar ground for Nvidia

While Microsoft wins the title for the most stock splits (nine) of the Magnificent Seven stocks, Nvidia isn't far behind in second place, having split its stock six times since its initial public offering in 1999. The artificial intelligence (AI) titan's first go-round was in 2000, when it executed a 2-for-1 stock split, while its most recent was in 2024, when it completed a 10-for-1 split.

Of course, the company's past stock splits don't guarantee that management will choose another split, but they're certainly a clear indication that the company isn't averse to the possibility.

You don't need the power of AI computing to calculate the likelihood of Nvidia splitting its stock

Many investors are enthusiastic about finding potential stock splits. They're under the delusion that if they buy shares before the stock splits (at least with respect to forward stock splits), they will be in a more advantageous financial position with the larger number of shares they would ultimately own than after the stock splits.

Veteran investors, however, recognize the flaw in this thinking. Just as changing a $20 bill into four $5 bills doesn't make you any richer simply because you have more bills in your pocket, you won't be any better off owning more shares of a stock after a forward stock split than you would've been before the stock split. The value of your investment remains the same.

Knowing this, many may wonder what advantage companies gain by splitting their stocks at all. There are several reasons why they may make the choice, but most often it's because the stock's price has risen so high that it may price some investors out of buying a single share. Based on this, those evaluating Nvidia as a potential stock split candidate will rightfully conclude that it's quite unlikely to occur anytime soon, since shares are priced around $185 as of this writing and have a 52-week high of about $212.

For perspective, consider that prior to Nvidia's 2024 stock split, shares were priced around $1,200 each.

Should AI investors pile into Nvidia stock right now?

Since it's unlikely that Nvidia will announce a stock split in the foreseeable future, investors may wonder if it's still a reasonable time to load up on Nvidia stock. Standing at the forefront of the AI revolution, Nvidia is a no-brainer stock for those seeking exposure to AI. Plus, the company is in stellar financial health with the torrents of free cash flow that it generates: $61.7 billion through the first nine months of 2025, a 36.4% increase over the same period in 2024.

Nvidia stock is priced at 42.5 times trailing earnings, which, admittedly, doesn't suggest it's in the bargain bin, but it is available at a discount to its five-year average P/E of 65, making today a good time to click the buy button.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Netflix, Nvidia, and ServiceNow. The Motley Fool has a disclosure policy.