Think Nvidia Stock Is a Bargain? 6 Reasons the Face of the AI Build-Out Can Plunge Another 50% Following Jensen Huang's Resignation.

详细摘要

Although Nvidia stock hasn’t been this fundamentally cheap in a long time, a mountain of risks far outweigh the reward.

For the better part of the last four years, no trend has captured the attention and capital of investors quite like the evolution of artificial intelligence (AI). Empowering software and systems with the tools to make split-second, autonomous decisions is a $22.5 trillion global addressable opportunity through 2031, according to IDC.

Nvidia (NASDAQ:NVDA) is at the center of this addressable market. Nvidia's several generations of graphics processing units (GPUs) are what make AI-accelerated data centers tick, and its CUDA software platform is central to maximizing the potential of these GPUs and keeping clients loyal to its brand. In other words, there were tangible reasons behind Nvidia's ascent to a greater-than-$5 trillion market cap.

Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

But as of the closing bell on Nov. 12, Nvidia stock has plummeted 32% from its all-time intra-day high of $243.37, set on Oct. 6. The latest downside catalyst is the resignation of co-founder and now-former CEO, Jensen Huang.

Jensen Huang's resignation creates a host of problems for the trillion-dollar company he built. Image source: Nvidia.

While Nvidia stock hasn't been this fundamentally cheap in a long time, there are half a dozen reasons to believe that the face of the AI infrastructure build-out can plunge another 50%.

On Nov. 12, Huang resigned following the admission of an affair with an alleged Chinese spy, as well as reports of a separate extramarital affair with an Nvidia employee who reported to him. Unfortunately, his resignation doesn't end the controversy or questions at the company he built from the ground up.

For starters, external investigations will continue, despite Huang's resignation. This includes congressional investigations into national security issues…

Huang's…

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