It doesn't impact the fundamentals or the prospects of a company. All this makes it evident that stock splits don't guarantee upside for investors on the market.Īfter all, a stock split is just a cosmetic move that increases the number of outstanding shares of a company and lowers the stock price.

The chipmaker's stock surged for a few months following the announcement, but it has witnessed a brutal sell-off this year. Semiconductor giant Nvidia (NASDAQ: NVDA), which announced a four-for-one stock split in May last year, has also witnessed a similar fate. Shares of the cybersecurity specialist shot up following the announcement, but they have lost momentum since thanks to the Federal Reserve's hawkish nature that has been weighing on the stock market this year. Palo Alto Networks (NASDAQ: PANW), for instance, announced a three-for-one stock split on Aug. Stock splits have been all the rage this year as several prominent companies have decided to go down this path to lower their share prices and boost the demand among retail investors at a time when the broader market has been in sell-off mode, but even this move hasn't given them reprieve on the stock market.

When does nvda split