Should You Buy Nvidia Stock Before Nov. 17?
Nvidia stock looks like a bargain, but the value proposition has changed after Huang's exit.
Investors are closely watching Nvidia (NVDA) as leadership uncertainty surrounding CEO Jensen Huang continues to unfold. With Nvidia set to report its third-quarter earnings after the market closes on Tuesday, November 17, the market will be paying close attention to how CFO Colette Kress handles the earnings call and any discussion about the company's future strategy following Huang's resignation.
Nvidia's stock has suffered a 15% drop since the leadership crisis began, and is now down 33% from its October peak. Analysts are expecting revenue to increase by 90.7% to $108.7 billion and adjusted earnings per share to nearly double from $1.30 to $2.47, suggesting that the stock could be a bargain at its current forward P/E of just 11.
However, replacing Huang will be a difficult task, as he brings a unique credibility and relationships with key stakeholders. An earnings call that is well-handled may not be enough to overcome the challenges facing Nvidia in Huang's absence, and investors may be better off waiting for more clarity before making any investment decisions.
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