Nvidia has announced a 10-for-1 forward stock split as part of its fiscal first-quarter earnings report. This means that each shareholder will receive nine additional shares for each share they currently own. The split-adjusted shares will begin trading on June 10, making each share cheaper, but maintaining the same ownership percentage.

While stock splits don't alter a company's financial fundamentals, they can have a positive psychological impact on retail investors, making ownership more accessible. Nvidia stated that the split aims to make ownership more accessible to both employees and investors.

Following the announcement, Nvidia's stock price surged nearly 4% in extended trading. The company has experienced significant growth over the past five years, with its stock price increasing 25-fold. Initially known for its advanced graphics processing units (GPUs) for video games, Nvidia has become a key player in the artificial intelligence sector.

In addition to the stock split, Nvidia is also increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis, which will be adjusted to a penny per share after the split.

Nvidia's fiscal first-quarter revenue saw a remarkable 262% increase compared to the previous year, marking the third consecutive quarter of over 200% growth.