Goldman Sachs downplays the Nvidia stock split hype, sees little impact

For investors hoping Nvidia 's stock split could translate into a sustainable rally, Goldman Sachs cautioned the benefits from such an event are usually minimal. Last month, Nvidia announced a 10-for-1 forward stock split in its fiscal first-quarter earnings report. The shares began trading on a split-adjusted basis at market open Monday. Nvidia shares surged nearly 27% in May and another 10% month to date to notch a $3 trillion market cap .

However, in following weeks or around the effective date, prices didn't show a clear impact, it found. "One theory for the announcement effect is increased liquidity. However, we find that liquidity showed little change after the split took effect," David Kostin, Goldman's head of U.S. equity strategy, said in a note. Moreover, the Wall Street firm discovered that most recent stock splits have not generated a significant increase in retail trading activity.

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