Forget Waiting For An Nvidia Split: Nvda's Real Valu…

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Why an Nvidia stock split probably isn’t happening in 2026

A few numbers make it clear why a stock split isn’t on the horizon for Nvidia. The first is its price. Companies usually split their stock to make it more affordable for retail investors. When Nvidia conducted its last stock split, a 10-for-1 split in 2024, it was trading at about $1,200. Before that, it conducted a 4-for-1 split in 2021 when it was trading at about $750.

Nvidia closed at $239 on Oct. 6. Its price would need to be roughly three to five times larger to be in the same range as during its previous stock splits.

That brings us to the second important number: Nvidia’s market cap of $5.8 trillion. If the company were to grow three times larger, it would have a market cap of more than $17 trillion. In all lihood, Nvidia won’t need to split its stock again for the rest of the decade.

Nvidia is set up well for continued growth

One of the main reasons some investors are reluctant to buy Nvidia is its size. It already tops the list of the world’s largest public companies, so there’s the question of how much it can continue to grow from here.

But companies continue to spend heavily on artificial intelligence (AI), and Nvidia is reaping the benefits. It reported $96.2 billion in revenue in Q2 FY 2027, up 106% year over year, on an excellent gross margin of 75%. Most of that ($89 billion) is data center revenue, as Nvidia makes the most popular AI chips, including its Blackwell and Vera Rubin lines.

Nvidia Stock Quote

NASDAQ: NVDA

Nvidia

Premium Feature

Moneyball Superscore

95/100

Today’s Change

(-2.94%) $-6.99

Current Price

$230.48

Key Data Points

Market Cap

$5.6TMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$229.85 – $237.07

52wk Range

$164.27 – $243.37

Volume

118.7M

Avg Vol

121.5M

Gross Margin

74.67%

Dividend Yield

0.23%

Even after Nvidia’s recent growth, it’s reasonably valued for one of the top AI stocks. It trades at about 26 times forward earnings and has a forward price/earnings-to-growth (PEG) ratio of less than 0.3. A PEG ratio below 1 indicates a company may be undervalued, and Nvidia is well below that mark.

Nvidia is doing the opposite of a split, and that’s good news for investors

A stock split increases a company’s number of s without changing the value of your position or your ownership stake. If a company trades at $500 and carries out a 5-for-1 split, each $500 becomes five new $100 s.

Nvidia, on the other hand, is buying back s. On Sept. 28, the company announced that its board of directors authorized a $150 billion increase to its repurchase program, increasing the program total to $235 billion. It expects to execute the total remaining through its fiscal 2028, essentially the next five quarters and change.

Buybacks are generally better for investors than stock splits because they reduce the number of outstanding s. Each has a larger ownership stake, and earnings per (EPS) rise. The fact that Nvidia’s board authorized a $150 billion increase suggests management considers the stock undervalued, and it’s a large commitment to return capital to holders.

Nvidia’s value isn’t about the price

The real value of Nvidia is its crucial role in the AI build-out. Tech companies are investing in AI infrastructure, with the four largest hyperscalers (Alphabet, Amazon, Meta Platforms, and Microsoft) reporting over $300 billion of capital expenditures in the first half of 2026, according to research by The Motley Fool. Even with increased competition from Advanced Micro Devices and custom chipmakers, Nvidia still has an estimated 75% of the AI accelerator market.

There are valid concerns about Nvidia. My primary worry is that it’s heavily dependent on AI spending, and if companies slow down that spending, Nvidia’s performance would suffer.

However, given how AI is progressing and its role as a potentially transformative technology, I expect the AI build-out to continue. If you’re bullish on AI, then Nvidia is still worth considering as an investment, especially considering its growth and affordable valuation.