{
  "id": 19686586,
  "title": "Jensen Huang’s downfall cut the P/E of Nvidia stock by a third. But don’t call it a bargain yet",
  "url": "https://urgent.news/2026/11/12/jensen-huangs-downfall-cut-the-p-e-of-nvidia-stock-by-a-third-but",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-12T17:13:48.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/11/12/jensen-huang-downfall-is-nvidia-a-buy-or-sell/"
  },
  "original_language": "en",
  "account": "Nvidia's stock value plummeted by a third following the resignation of CEO Jensen Huang, who left the company on November 12. This dramatic drop has made Nvidia's shares appear like an historically great investment based on conventional metrics. The GPU company's stock peaked at $243 on October 5, giving it the world's largest market cap at $5.85 trillion. Analysts were unanimous in their praise for Nvidia's value at that time, as the company was selling at a modest 30 times earnings, compared to its 100% earnings growth rate.\n\nSince October, Nvidia's stock has plummeted 34% to $161, a significant drop that slashed nearly $2 trillion from its valuation. This makes its price-to-earnings ratio (PE) 20, a figure that suggests it is a remarkable value play. For comparison, Apple and Amazon have PE ratios of 40 and 22, respectively, and their growth rates are a fraction of Nvidia's speed.\n\nDespite its impressive size and growth rate, Nvidia has not fallen victim to the law of large numbers. In the quarter ended October 31, Nvidia's sales jumped 26% from the previous three-month period, outperforming the growth rates of the two previous quarters. Moreover, Nvidia's gross margins reached a substantial 75% in the October quarter, surpassing its FY 2026 target of 71.3%.",
  "summary": "Wall Street calls it panic selling. But losing the CEO who held off commoditization could justify every dollar of the $2 trillion wipeout.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "CNBC",
        "title": "‘It had to happen’ — Jim Cramer on Jensen Huang’s resignation and future for Nvidia stock",
        "url": "https://urgent.news/2026/11/12/it-had-to-happen-jim-cramer-on-jensen-huangs-resignation-and-future",
        "published": "2026-11-12T15:25:49.000Z"
      },
      {
        "outlet": "Financial Times",
        "title": "Meet the contenders to succeed Jensen Huang",
        "url": "https://urgent.news/2026/11/12/meet-the-contenders-to-succeed-jensen-huang",
        "published": "2026-11-12T17:24:08.000Z"
      },
      {
        "outlet": "MarketWatch",
        "title": "Nvidia’s stock is on sale after Jensen Huang’s exit. But is the selloff just beginning?",
        "url": "https://urgent.news/2026/11/12/nvidias-stock-is-on-sale-after-jensen-huangs-exit-but-is-the-selloff",
        "published": "2026-11-12T18:09:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}