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Nvidia remains a Buy despite CEO scandal and 22% stock drop, with a $235B buyback plan boosting long-term value.

Market News
09 Nov 2026, 16:30 WIB
Seeking Alpha
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Neutral
Nvidia remains a Buy despite CEO scandal and 22% stock drop, with a $235B buyback plan boosting long-term value.

Nvidia Corporation is still considered a Buy as its core business fundamentals remain strong despite a recent 22% decline in stock price triggered by a scandal involving CEO Huang's alleged ties to Chinese intelligence. The company has authorized a $235 billion share buyback, which could retire about 5% of shares, making current prices more attractive. However, the pace and funding of the buyback are uncertain, and the ongoing investigation poses a risk that could limit valuation multiples. Investors should watch closely for developments in the buyback execution and regulatory issues while noting that Nvidia offers compelling long-term value at 12 times FY2028 earnings estimates if growth targets are met.

Nvidia trades at USD 175.13 on Pluang as of Nov 09, 2026 21:41 WIB, down 6.17% in one day. The stock remains well below its 52-week high of USD 239.27. Market participants hold Nvidia for an average of 118 days, reflecting medium-term interest despite recent volatility.

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