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Charles Payne: Nvidia’s stock split is a form of manipulation

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Nvidia, a market-favorite company, recently announced a 10-for-1 stock split, causing its share price to drop drastically. However, FOX Business’ Charles Payne warned against what he called the “deliberate manipulation of the American public.” He pointed out that stock splits are a form of manipulation designed to make the stock appear more affordable, leading investors to pay more than they should. Despite this, Nvidia’s stock has been on a steady rise, with a 231,485% increase since its IPO in January 1999.

The stock split announcement came on the heels of Nvidia’s impressive first-quarter revenue of $26 billion, a significant rise from the previous year. The company also forecasted higher-than-expected second-quarter revenue of $28 billion. CEO Jensen-Huang, who is both the head of Nvidia and the largest individual shareholder, has steered the company towards success in the A.I. industry, outperforming rivals like Meta and Google. Nvidia’s stock split is just one of many occurring this year, as high-priced shares are divided to attract new investors while rewarding current ones.

Despite the drop in share price due to the stock split, Nvidia was trading around $121.09 per share following Tuesday’s opening bell. Payne criticized investors who buy into high-profile stock splits, labeling them as “suckers.” He noted that non-investors are often drawn to these events, leading to a surge in buying after the split. Payne accused Wall Street of manipulating the public by creating the illusion of affordability through stock splits, only to drive up prices later on. Nvidia’s success in the A.I. industry has made it a sought-after investment, further fueling interest in its stock split.

Nvidia’s success story has been driven by its focus on artificial intelligence and technology, catapulting it to the forefront of the industry. Its CEO’s strategic leadership and significant stake in the company have played a crucial role in its growth and market dominance. As Nvidia continues to innovate and expand its product offerings, it remains a top choice for investors looking to capitalize on the A.I. boom. With high-profile stock splits becoming a trend this year, Nvidia’s move to divide its shares is part of a larger strategy to attract new investors and keep existing ones engaged.

As stock splits gain popularity in the current market climate, companies like Nvidia are leveraging these events to entice investors and drive up shareholder value. Despite criticisms of manipulation and superficial price reductions, stock splits remain a key tactic for companies looking to bolster their market presence and attract new capital. Nvidia’s recent stock split may have sparked controversy, but it ultimately reflects the company’s ongoing success and strategic positioning in the competitive A.I. industry. Investors will continue to monitor Nvidia’s performance as it navigates the evolving landscape of technology and innovation.

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