Nvidia Clears the Way for AI Stocks to Keep Powering Higher

Helping to fuel Nvidia’s rally was its announcement of a 10-for-1 stock split.

Nvidia Clears the Way for AI Stocks to Keep Powering Higher

Of course, stock splits have no fundamental effect on share value. They’re the stock market equivalent of exchanging a $10 bill for 10 $1 bills. Still, they tend to help drive buying from mom-and-pop investors, according to Alec Young, chief investment strategist at Mapsignals.

“The split is huge news,” Young said in an interview with Bloomberg. “You shouldn’t underestimate the appeal of stocks that are retail favorites.”