Nvidia Corporation NVDA shares were retreating Tuesday after a strong advance in the previous session.
The shares of the graphic chipmaker began trading on a split-adjusted basis Tuesday.
The company announced a 4-for-1 stock split May 21, and the decision to effect the stock split was later approved by its shareholders at the company's annual meeting held June 3.
A stock split effectively increases the outstanding shares and cuts the price, and this leaves the market capitalization unchanged. The additional number of outstanding shares will help boost liquidity and also make buying affordable for retail investors. A stock split is therefore considered a long-term positive.
Analysts and traders are optimistic about Nvidia's fundamentals given its dominant position in the graphics processor market and technological prowess.
NVDA Price Action: At last check, Nvidia shares were down 2.91% at $182.32.
Related Link: PreMarket Prep Stock Of The Day: Nvidia Bucks The Trend
Photo: courtesy of Nvidia.
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