Should You Buy Nvidia Stock Now That Jensen Huang Has Resigned? Here’s What I’m Doing.

Résumé détaillé

Nvidia (NASDAQ:NVDA) has had a tumultuous few days. News broke that CEO Jensen Huang had an affair with someone who is an alleged Chinese spy. That's a major problem considering…

Nvidia (NASDAQ:NVDA) has had a tumultuous few days. News broke that CEO Jensen Huang had an affair with someone who is an alleged Chinese spy. That's a major problem considering how vehemently the U.S. government has fought to keep Nvidia's cutting-edge technology out of China's hands.

This has caused Nvidia's stock to sell off over the past few days, compounding the fact that it was already declining before this story broke. The reality is that the broader stock market believes AI spending has gone too far and is no longer willing to fully value companies in this sector.

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 »

With some other relationships coming to light and Huang resigning on Nov. 12, Nvidia is entering a new paradigm.

Those are two negative forces working against Nvidia stock, which is why it's down 30% from its all-time high. The question is, should you sit this one out or buy more? Here's what I'm doing.

The biggest question investors must ask themselves is whether anything has changed inside Nvidia's business. I think the answer to that is no.

The AI build-out is still going strong, and several AI hyperscalers have already indicated that 2027's build-out costs will be greater than in 2026. In fact, Nvidia gave guidance that it expects data center capital expenditures by the big five AI hyperscalers to reach $1.3 trillion in 2027, up from nearly $800 billion in 2026. This is projected to lead to 70% revenue growth next year, which is far faster than the market is currently pricing into the stock.

The biggest question is what Nvidia will look like without Huang. If the board can identify a suitable long-term replacement, then there's nothing to worry about.

Furthermore, future product development could be an issue, as Huang is viewed as a visionary in his…

Début de l'article, extrait de Yahoo Finance. Pour lire la suite, ouvrez l'article chez le média.