Nvidia PE falls to 14-year low, but CEO exit and AI worries cloud the bargain

Nvidia shares now trade at about 12 times projected earnings, their lowest price-to-earnings valuation since 2012, after falling from an October 6 record. Business Recorder reported that the stock lost more than 5% on Thursday and is down about 12% this week after CEO Jensen Huang resigned amid reports concerning his personal life. CFO Colette Kress has become interim chief executive while the company seeks a permanent replacement.

The shares have also dropped over 30% from their peak, with investors concerned that construction of AI data centres could slow. Analysts have not yet lowered their estimates, which point to October-quarter revenue growth of 92% and net profit above $60 billion, up 89% year over year, according to LSEG data. Nvidia is due to report results on Tuesday, with attention on Kress’s comments about the outlook as well as the figures.