Nvidia Stock Falls Below $165 After Its CEO Resigns: Is It a Bargain Buy?
Jensen Huang's exit is a big change, but the AI business behind the stock is still firing on all cylinders.
Nvidia shares dipped to around $165 this week following co-founder Jensen Huang's resignation as president and CEO, effective immediately. CFO Colette Kress will serve as interim CEO while the board searches for a permanent replacement. The SEC filing did not provide a reason for Huang's resignation, but it is believed that personal conduct issues were under consideration.
Nvidia's business remains strong, with revenue increasing by 106% year over year in the second quarter of fiscal 2027 to $96.2 billion. The company is expected to report third-quarter results on November 17, and its leadership will discuss these numbers on a conference call. Nvidia's stock appears to be very discounted at around $163, trading at roughly 11 times forward earnings.
However, there are arguments for and against buying the stock at the current price. The author is waiting for the November 17 earnings report and to see how the CEO search unfolds before making a decision.
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