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Nvidia shares drop amid CEO scandal but strong earnings forecast offers buying opportunity

Market News
12 Nov 2026, 01:39 WIB
Seeking Alpha
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Bearish
Nvidia shares drop amid CEO scandal but strong earnings forecast offers buying opportunity

Nvidia's shares fell sharply to a one-year low following controversy around CEO Jensen Huang's personal conduct, raising concerns about his leadership. Despite the short-term selloff, Nvidia remains fundamentally strong with expected Q3'27 earnings per share growth of 90% year-over-year and increasing sales of its Vera Rubin GPUs. The company's valuation premium is closely linked to Huang's leadership, but the current dip presents a potential long-term buying opportunity with an estimated 80% upside if the stock revalues to a reasonable price-to-earnings ratio of 20 times. Investors should weigh the temporary volatility against Nvidia's robust growth prospects in AI and data centers.

Nvidia trades at USD 159.75 on Pluang, down 5.36% as of Nov 12, 2026 06:41 WIB, reflecting a notable short-term selloff. Despite this, the stock sees a majority of buy orders at 69%, indicating continued investor interest. The typical hold time of 118 days suggests many investors are positioned for medium-term growth rather than quick exits.

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