If you cut a pizza into four slices, you still have one pizza. Of course, you do not own more of Nvidia because of the stock split. Nvidia has its hands in gaming, cloud data centers, cryptocurrency, machine learning, artificial intelligence (AI), professional visualization, electric vehicles (EVs), autonomous driving, 5G, and more! With that said, Nvidia partners with ARM, and they should do fine regardless.

One key risk to note is that Nvidia is attempting to acquire ARM Holdings from SoftBank ( SFTB.Y 0.05%) and has bumped into regulatory pushback. But the company is firing on all cylinders, and when you look under the hood, you will find that its future looks very bright, which can arguably justify the premium share price. A $10,000 investment would be worth approximately half a million dollars today. The stock price has delivered nearly 5,000% returns over the past decade. It's easy to see why some investors would shy away from Nvidia at these levels. The share price ran to a high of $835 before pulling back.

The company had blowout earnings last quarter, reporting over 88% year-over-year revenue growth and a 33.77% net profit margin. The price-to-earnings ratio was 89, based on a $751 share price. The stock closed at $751.19 on July 19 with a $468 billion market cap. Nvidia ( NVDA 2.17%) will be executing a 4-for-1 stock split, and shares are expected to start trading on a split-adjusted basis on July 20.

When is nvda stock split 2021