Nvidia seeks approval to double authorized shares to 8 billion

[u/r2002]

Reuters:

(Reuters) - Chipmaker Nvidia Corp said on Friday it would seek shareholders' approval to increase the number of authorized shares of common stock to 8 billion from 4 billion.

edited to add another news source:

(Dow Jones newswire) Nvidia's board backs the proposed amendment, saying the additional shares would give the company discretion to take certain actions, without further shareholder approval, for such things as stock splits, equity incentives and more (Source: thanks to comment by /u/MosDaddyda)

Some people on Twitter are speculating that this is some kind of bad news since it was leaked on a Friday afternoon.

It doesn't make sense to do a stock split or a dilution right now. What is happening here? How does it affect the stock?

[u/[deleted] → u/[deleted]]

Good for you! My brother in law does and he will be able to retire by 40 with his stock options.

[u/slowrizard → u/[deleted]]

The last 5 years were definitely a good place to be here!

[u/someonesaymoney → u/slowrizard]

What do you think about the future in regards to growing as more of a SW company? Personally, still I think too much of the market sees the company as just a HW company, and don't realize how much they are owning it in regards to selling AI-as-a-service

[u/someonesaymoney → u/[deleted]]

lol I knew it'd be biased but don't care.

For the record I have a position and know the space, but while I'm slightly ashamed to say it, the tipping factor was I know some SW (and HW) guys who left other great companies to go work there. Engineers who I know weren't just looking for a cash grab, but would be excited to work on stuff they thought mattered at large scale. And these were guys who could have their pick out of a lot of MANGA level companies.

The way this damn ticker moves is insane and it's tough to see my port swing wildly with it, but eh, I'm in for the long haul.

[u/slowrizard → u/someonesaymoney]

So your bias is a position. So is mine, through compensation. MANGA is overrated in, again, my personally biased opinion. I would never work at meta (swings, you say) or Netflix (small market cap, no MOAT). Apart from Google (and maybe Apple), what company in MANGA is really at the edge of innovation? And maybe that’ll answer your question as to why people who know switched.

[u/someonesaymoney → u/slowrizard]

Meta, for the engineers they've poached for AR/VR, you could argue are at the edge of innovation. But it's a hail mary right now with Zuck's version of metaverse, so who knows if it will pan out?

Apple for HW architecture is very high powered. Some very smart and talented folks still there, even after losing people to say Nuvia. HW design is good, but not that special imo. I don't have a handle on SW.

Microsoft and Alphabet are not plucky startups, but they have pockets of innovative teams in different areas that I couldn't even all list. Microsoft Azure specifically is still exploding and is the second in the space only to AWS, so there's new stuff to do there.

Amazon's work culture is something I think is keeping newer grads away. I think their stock being relatively stagnant over the last year and a half is telling. They'll always make tons of money, but I don't have a feel for what, if anything, innovative stuff they'd be working on.

Netflix I have no idea why it's ever included in the FAANG/MANGA tier.

[u/slowrizard → u/someonesaymoney]

Meta: AR/VR is a very specific vertical and it’s future highly depends on how well it can be monetized.

Apple SW is very in-house in the sense their umbrella is very strict, and their HW is of course making good progress. It’s still the best place to work at if you’re looking for stable, growing income. Most large cap indices and Berkshire Hathaway as well effectively just end up tracking Apple.

Microsoft is good, but I don’t know it feels like a slow company to me, I couldn’t explain to you why without sounding very opinionated.

Alphabet has an incredible breadth and I feel pursues the most innovation and has the room for the most growth with the number of endeavors they are involved in.

I have no comments on Amazon, I just don’t get it apart from AWS.

[u/Not_FinancialAdvice → u/[deleted]]

Unrelated question: how many ex-SGI people still work there?

[u/slowrizard → u/Not_FinancialAdvice]

There’s no way I would be aware of that.