NVIDIA to date

NVIDIA shares rose last week on strong valuations from analysts and the announcement of a 4-to-1 stock split. This Wednesday, Nvidia reports firt quarter earnings profits are expected to be record highs.

NVIDIA (NVDA) is among the world leaders in PC, data centre and automotive chips, and has recently expanded its offerings to include cryptocurrency mining chips.

NVIDIA's competitor, AMD (AMD), has already reported its first quarter ending March 2021, which beat Wall Street estimates to post record revenues.

NVIDIA will report its first quarter results on Wednesday, May 26, after the market closes.

When announcing its fourth quarter results on Feb. 24, NVIDIA management said it expects first quarter revenue to increase 71 percent to a record $5.30 billion, beating original estimates and analysts' estimates.

Nvidia announced on Friday that it would conduct a four-to-one split of its shares to make them more accessible to investors and employees. Nvidia's board of directors has approved the share split, but it still has to be approved by shareholders at the company's annual meeting on 3 June. If approved, each Nvidia shareholder of record will receive three additional ordinary shares for each share they own at the close of business on 21 June. Nvidia's shares will begin trading with the split adjustment on 20 July.

The experience of share splits by Apple (AAPL) and Tesla (TSLA) last year has shown that shares usually rise after such an announcement, but may fall after the start of trading with it.

It's worth noting that over the past five years NVIDIA's earnings per share rose from $1.08 to $6.90 before the end of FY2021 in January. This improvement is due to that the company has shifted its focus to selling chips with higher margins for the data centre segment. At the same time, conditions for some of NVIDIA's key markets in 2021 automotive, cryptocurrencies, and PC chips look volatile and a decline in sales could affect the company's results; it is important to keep that in mind.