Nvidia's 10-for-1 stock split takes effect soon. What it means for your investment

Stock splits like Nvidia's don't matter, or do they? That debate seems to come up every time a new company announces plans to complete one. As with many investing questions, the answer is: It depends. Plenty of market observers downplay the importance of stock splits, arguing that a company carving up its stock into lower-priced pieces doesn't change a thing about its underlying fundamentals. They're not necessarily wrong.

In an investment account with $10,000, a single share of Nvidia is 12% of the portfolio. That's larger than what many might consider a "full position" size. Plus, a hallmark of our investment strategy is to never buy full positions at once; instead, we average in over several buys in order to improve our overall cost basis. A lower share price makes that far more manageable.

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Nvidia topples Apple with $3 trillion market cap; 10-for-1 stock split aheadInvestors keep piling into shares of Nvidia, which hit another fresh record high as the AI chipmaker prepares for its 10-for-1 stock split.
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