The chipmaker's valuation multiple has touched its lowest point since 2012 as shares fell over 30 percent from their October 6 record. Former chief executive Jensen Huang stepped down following reports of extramarital affairs, prompting Chief Financial Officer Colette Kress to take over as interim leader. While customer GPU orders remain intact, market observers worry whether future earnings will meet expectations amid the executive disruption. All eyes are now turning to Tuesday's earnings release, where analysts project October-quarter revenue to surge 92 percent.
Key points
Customers have maintained their GPU orders, indicating the current crisis is primarily a…: Customers have maintained their GPU orders, indicating the current crisis is primarily a key-person issue rather than a structural demand collapse.
Colette Kress has assumed the interim chief executive role while the board searches for a…: Colette Kress has assumed the interim chief executive role while the board searches for a permanent successor to lead the company.
Market participants will scrutinize the upcoming Tuesday report to see if forward guidanc…: Market participants will scrutinize the upcoming Tuesday report to see if forward guidance can validate the heavily discounted valuation multiple.
Sources checked by our analysis pipeline: 1
Nov 12 : By one of Wall Street’s favorite metrics, Nvidia shares look like a bargain.
Following a steep drop from its October 6 record high, Nvidia’s stock is trading at the equivalent of 12 times expected earnings. That’s its lowest valuation since 2012, when the chipmaker was competing with Advanced Micro Devices to dominate the market for videogame graphics cards while struggling to find a foothold in tablets and other mobile devices.
The stock was down more than 5 per cent on Thursday after CEO Jensen Huang resigned, and is down about 12 per cent this week amid a scandal over reports of his extramarital affairs, including one with a woman alleged to be a Chinese spy.
Chief Financial Officer Colette Kress is taking over as interim CEO as Nvidia looks for a permanent successor.
But concern about leadership is not the only thing that has troubled investors. Nvidia, whose GPUs have fueled the AI boom, is now down over 30 per cent from its record, in large part due to worries about a potential slowdown in the buildout…
Kalshi is currently in discussions to secure new funding at a $65 billion valuation, according to a report from Bloomberg. Further details regarding the prospective investors or the total capital being sought have not yet been disclosed.
The networking technology firm generated positive momentum in the market following the release of its latest quarterly financial results. Investors responded favorably after the company outperformed earnings expectations and increased its forward-looking guidance. This performance provides a reassuring sign regarding the hardware maker's operational trajectory and future business prospects.
Nvidia PE falls to 14-year low, but CEO exit and AI worries cloud the bargain. Nvidia PE falls to 14-year low, but CEO exit and AI worries cloud the bargain