Is Nvidia Stock Still a Buy? Shares Hit Cheapest Valuation Since 2012 After Huang Exit, Earnings Days Away

SANTA CLARA, Calif. — Nvidia's shares have just had their worst week in more than 18 months, and investors are asking whether the selloff after Jensen Huang's resignation is a buying opportunity or the start of a longer decline.

The stock fell 2% on Friday to close at $162.85. It lost about 13% for the week, its worst weekly drop since April 2025, when sweeping U.S. tariffs shook global markets.

It was also Nvidia's sixth straight weekly decline, its longest losing streak since 2012. The chipmaker's market value closed below $4 trillion for the first time since July 2025.

A Steep Fall From the Peak

The decline began well before Huang stepped down. Nvidia closed at a record $239.24 on Oct. 6 and has since lost about a third of its value.

The selling sped up after Huang resigned Nov. 12 as president, chief executive and board member. On the day of the announcement, the stock dropped as much as 14% to an intraday low of about $148.88, its lowest level in more than 16 months, before buyers stepped in and it closed down 4.3%.

Chief Financial Officer Colette Kress is serving as interim CEO while the board searches for a permanent successor.

Cheapest in Years

For bargain hunters, the selloff has made Nvidia look cheap by historical standards. The stock now trades at about 12 times the profit analysts expect it to earn over the next year. Reuters said that is its lowest valuation since November 2012.

That's a striking figure for a company that became the world's most valuable by supplying the chips that power the artificial intelligence boom.

Most analysts remain positive. According to one tally, 66 still rate the stock a "buy," with 15 at "hold" and one at "sell."

But Analysts Turn Cautious

The mood on Wall Street has clearly shifted. At least 10 analysts have turned more bearish on Nvidia this month, many of them cutting price targets.

HSBC downgraded the stock to "hold" on Friday and cut its price target to $170 from $365.

Analysts at Oppenheimer said Nvidia was likely to report solid results but warned that sentiment may matter more for now. "We expect fundamentals to take a backseat near term," they wrote in a note.

Seaport Research's Jay Goldberg kept his "sell" rating. He argued that the decline hasn't removed the risks from leadership uncertainty, investigations and growing competition.

Before Huang resigned, several analysts told CNBC that his departure could wipe out as much as 20% of Nvidia's value, given how central he had been to the company's success.

All Eyes on Earnings

The next big test comes Tuesday, Nov. 17, when Nvidia reports fiscal third-quarter results.

Investors will look for signs that demand for its AI chips remains strong despite the leadership turmoil. They will also listen for comments on the CEO search, Kress's role and any fallout from the investigations surrounding Huang.

Some bulls argue the business itself hasn't changed. Demand for Nvidia's data center chips remains high, and its production capacity is reportedly sold out well into next year.

The Case For and Against

Supporters see a rare chance to buy a market leader at a discount, arguing that the AI build-out still has years to run and that Nvidia's technology lead won't disappear overnight.

Skeptics point to several risks:

uncertainty over who will lead the company possible regulatory and legal scrutiny tied to the scandal strengthening competition from rival chipmakers and from big tech companies designing their own AI chips

Major shareholders have urged the board not to rush its CEO search, and some have even raised the possibility of Huang's return. Supporters, including Elon Musk, have signed a petition calling for him to be reinstated.

For investors, the question is whether the drop has already priced in the risks or whether more turbulence lies ahead. Tuesday's earnings may offer the first clear answer.

This article is for informational purposes only and does not constitute investment advice. Investors should do their own research or consult a licensed financial adviser before making investment decisions.