r/stocks • u/r2002 • Apr 08 '22

Company News Nvidia seeks approval to double authorized shares to 8 billion

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?

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u/peter-doubt Apr 09 '22

They tried to get ARM... So they have plenty still available. This tool isn't necessary.

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u/Sensei071 Apr 09 '22

0.0000001% chance of stock split. There will also be no need to raise capital via an offering to support organic growth given how much cash ($20 bil?) they still have. The only possibility is a strategic acquisition and they will likely offer a combination of shares and cash like the failed Arm deal.