Nvidia (NVDA) executed a 10-for-1 stock split, with shares opening at around $120. TECHnalysis Research president and chief analyst Bob O'Donnell joins Morning Brief to break down the significance of the stock split and investor reactions.

"The beauty of a 10-for-1 split like this is that the average person who couldn't afford that Nvidia stock can obviously jump in," O'Donnell says.

While Nvidia has been a success story, he believes the road ahead isn't particularly smooth. O'Donnell says that the competition will heat up, with more companies willing to try alternatives to give them some leverage when working with Nvidia. He notes that with the company's sheer size, there may be some regulatory concerns. Finally, he explains that Nvidia will face a major challenge if generative AI changes and its chips are no longer needed.

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This post was written by Melanie Riehl