(Reuters) - Nvidia Corp on Friday announced a four-for-one stock split as it looks to make its stock less expensive for investors, sending the chipmaker's shares up 3%.
The company's stock, which was last up at over $600 in premarket trading, has gained nearly 12% this year after its value more than doubled in 2020.
Stock splits can potentially attract retail investors who make small trades. However, as brokerages increasingly allow customers to buy parts of shares, the benefit of share splits appears to have diluted over time.
Apple split its stock 4-for-1, while electric carmaker Tesla split its stock 5-for-1 last year, with both companies saying they aimed to make their shares more affordable to individual investors.
Santa Clara, California-based Nvidia said stock holders of record on July 21 would receive dividend of three additional shares after the close of trading on July 19, with the stock trading on a split-adjusted basis beginning July 20.
The announced split will require stockholder approval at the company's annual meeting in June.
(Reporting by Akanksha Rana; Editing by Ramakrishnan M. and Vinay Dwivedi)