LUCKNOW (CoinChapter.com) – The AI boom has caused Nvidia (NVDA) stock to surge nearly 212% over the past year, making it a $1 trillion company. In addition, Nvidia’s recent 10-for-1 stock split shows management’s confidence in continued growth. A stock split is a corporate action that increases the number of shares outstanding while proportionally reducing the share price. Lowering the price per share makes the stock more accessible to retail investors. In the process, the company’s market value remains unchanged.

In addition to Wall Street, Nvidia's stock split also has important implications for the cryptocurrency market. As a leader in artificial intelligence and semiconductors, Nvidia's move is not just a financial strategy, but also a harbinger of the future for cryptocurrency investors. Here are three cryptocurrency-related takeaways from Nvidia's stock split.

1. Retail traders may drive the cryptocurrency market
With Nvidia's stock more affordable after the split, an influx of retail traders is expected. That could initially push prices higher, but could also spark more volatility in the stock, said Adam Coons of Winthrop Capital.
“Retail traders can be more quick and emotional in their buying and selling decisions, so this could lead to increased volatility as institutional buyers begin to be diluted,” Coons warned.
Because Nvidia's stock is more volatile and affordable, retail investors seeking to diversify their portfolios through high-risk, high-reward opportunities may find cryptocurrencies more attractive. Their increased risk appetite could push up cryptocurrency prices while reducing their U.S. dollar holdings.

2. Artificial Intelligence Tokens Are Bullish
As a leader in AI processing hardware, Nvidia’s performance directly affects crypto projects based on AI and machine learning. Tokens such as Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) are likely to experience bullish momentum.
Analysts such as Julian Emanuel of Evercore ISI believe that Nvidia is a "generational opportunity" and a "celebrated" tech stock of this era. With the company at the forefront of AI innovation, crypto assets that take advantage of these cutting-edge technologies could be major beneficiaries.

3. Bitcoin and Nvidia are in step with the AI craze
The 90-day correlation coefficient between Bitcoin and Nvidia rose to 0.76. This means that they tend to move more in sync.
Some analysts warn of an AI bubble similar to the dot-com bust. However, the integration of AI across industries could foster continued growth. As Nvidia’s processors power more AI projects, including blockchain applications, the correlation between Bitcoin and chipmaker stocks could strengthen.

Nvidia's stock split reflects not only management's optimism, but also broad enthusiasm for the growth trajectory of the AI industry. As Lam Research CFO Doug Bettinger said, we are still "very, very early" in the AI investment cycle.
The second wave of AI is expected to start taking effect, and businesses will integrate these technologies into their plans and spending. This will likely bring multi-year increases in computing, networking, and memory requirements. Growth in these areas could benefit Nvidia and AI crypto projects.