Key Takeaways
- NVIDIA stock fell 11% on a report that its board is preparing to oust CEO Jensen Huang, and Bernstein, Evercore ISI and William Blair downgraded it.
- Super Micro Computer, Dell, Sandisk and Astera Labs fell with it, though the news says nothing about AI demand.
- Analysts still expect NVIDIA’s earnings to more than triple in two years, yet the stock trades far below its usual multiple.
- NVIDIA’s Nov. 17 report is the next real test.
NVIDIA (NVDA) stock is down 11% today after The Wall Street Journal reported that its board is preparing to oust CEO Jensen Huang. The report followed news of a second extramarital affair, this one with a direct report.
AI hardware stocks tied to NVIDIA fell with it: Super Micro Computer (SMCI), Dell Technologies (DELL), Sandisk (SNDK) and Astera Labs (ALAB).
Even Bernstein has had enough
Bernstein’s Stacy Rasgon downgraded NVIDIA to Market Perform from Outperform and halved his target to $200 from $400: “we’ve had enough.”
Others followed overnight:
- Evercore ISI: In Line from Outperform, target cut to $186 from $465
- William Blair: Market Perform from Outperform, no target
Analysts’ estimates haven’t budged
Analysts still expect normalized EPS to more than triple, from $4.77 in the year ended January 2026 to $15.91 in the year ending January 2028:
That’s right where the fiscal 2028 estimate stood in late October, and analysts have no reason to cut it over who runs NVIDIA.
So the selling has all come out of the multiple, which was 14x forward earnings at the last close, against a five-year average of 36x:
Today’s drop takes it to about 13x, a five-year low.
TIKR tracks 62 analysts on Nvidia. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Nvidia, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Nvidia’s Analyst Ratings
Dragged down with NVIDIA
Dell is down 7% and Super Micro is down 10%. Dell reported a record $95 billion backlog of AI server orders on Sept. 1, and a CEO change at NVIDIA doesn’t shrink it. Both server makers just need NVIDIA’s chips to keep arriving on time.
Sandisk is down 8% and Astera Labs is down 6%. Sandisk’s data center revenue jumped 61% from the quarter before to $4.8 billion in its fiscal first quarter. That demand comes from the whole AI buildout, whoever runs NVIDIA.
The discount looks overdone
At about 13x forward earnings, I think the market is pricing in a far worse business than analysts expect. NVIDIA reports on Nov. 17, after guiding to revenue of $108.0 billion, and that’s the real test. Of course, the board’s investigation could take weeks, so the stock may stay under pressure even after a strong quarter.
So what is NVIDIA stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what NVIDIA could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
