Nvidia Undervalued? Stock Falls to $148.80 After Huang Resigns
Nvidia shares dropped as low as $148.80 on November 12 after CEO Jensen Huang resigned. The stock now trades near 11 times forward earnings, its lowest since May 2016, even as quarterly revenue more than doubled. The company reports results on November 17.
Nvidia shares fell as low as $148.80 on November 12, 2026, after CEO Jensen Huang resigned, leaving the chipmaker at roughly 11 times forward earnings. That multiple has revived a debate over whether Nvidia is undervalued or simply carrying new risk.
The stock hit an all-time high of roughly $243 in early October. It has since slid in what has been a brutal few weeks for shareholders. Nvidia is on track for its longest weekly losing streak since 2012, with about $1.6 trillion in market value erased.
Why Huang left
Huang's departure followed revelations about two extramarital relationships. One involved a woman suspected of ties to Chinese intelligence. Nvidia's board of directors has been investigating, and the allegations have not established that Huang compromised company secrets.
Chief Financial Officer Colette Kress is serving as interim CEO while the company searches for a permanent replacement. Investors are worried Nvidia could lose its dominant grip on artificial intelligence infrastructure.
What the valuation shows
The forward price-to-earnings ratio compares a share price with analysts' expected earnings over the next 12 months. A lower number means investors pay less for each dollar of anticipated profit.
Nvidia's forward P/E is around 11, according to Yahoo Finance data. That is the lowest reading since May 2016, according to TradingView. In late 2021 the stock traded near 90 times forward earnings.
A low multiple does not prove a stock is cheap. If future earnings disappoint, the number could mislead.
Results so far
Operations show little sign of weaker demand. In its fiscal second quarter of 2027, Nvidia posted $96.2 billion in revenue, up 106% from a year earlier. The data center business contributed $89 billion, up 117%, and adjusted earnings per share rose 120% to $2.22.
Spending on AI infrastructure by Microsoft, Amazon, Alphabet, Meta Platforms, Oracle, Anthropic and OpenAI drives those figures. Nvidia's Blackwell chips anchor many large projects, and its new Vera Rubin architecture is entering production. The company is also expanding into Vera CPUs, high-speed networking equipment and AI inference accelerators.
Management guided for fiscal third-quarter revenue of $108 billion, plus or minus 2%. That would be roughly 89% growth from the same quarter a year earlier.
Huang helped shape Nvidia's technology roadmap, customer relationships and competitive advantages, which is why his exit unsettled investors. Nvidia is scheduled to report third-quarter results on November 17.
