Nvidia (Nasdaq: NVDA) CEO Huang Affair Could Hand Investors A Rare Buying Opportunity
Nvidia (Nasdaq: NVDA) CEO's affair, which is on course to wipe as much as $250bn off the world's most important AI company, is likely to be seized on by savvy investors as a rare chance to buy into the chip giant at a discount, affirms the CEO of deVere Group, one of the world's largest independent financial advisory organisations.
The comments from Nigel Green come as Nvidia shares slide around 5% ahead of the US open, after the board launched an independent investigation into reports that Jensen Huang was targeted by a foreign intelligence effort.
AdvertisementHuang has admitted the affair in a memo to staff. The board says it has no reason to believe national security or company secrets were compromised, while stressing its inquiry will examine all available information.
The scandal lands on a stock that was already bruised. Nvidia had fallen 25% from its October 6 peak, erasing roughly $1.4 trillion in market value despite booming revenue growth, after a brutal tech rout in which nearly $450bn was wiped from its value in a single session as investors reassessed AI infrastructure spending amid fresh regulatory concerns.
On some measures, its forward price to earnings ratio has dropped to around 13 times.
Nvidia will report earnings on November 17.
Huang has had support from the White House, with President Trump describing him as a "fine person".
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