Nvidia Falls 9.5% to $168.89 as Mizuho Calls Stock 'Silly Cheap'

Nvidia shares fell 9.51% to $168.89 as of 00:15 UTC today, trading in a range of $165.89 to $174.65, after the chipmaker's board opened an independent investigation following reports that chief executive Jensen Huang had been the target of a foreign intelligence effort. Mizuho Securities technology analyst Jordan Klein told CNBC the selloff has left the stock "silly cheap," arguing that a forward price-to-earnings multiple below 10 times is extreme undervaluation for a company whose earnings are growing far faster than its share price.

Context — why Nvidia's derating matters now

Klein's core argument rests on a comparison the market rarely offers: a forward multiple below 10 times normally belongs to companies with structural problems or businesses in long-term decline. Nvidia is neither, in his view. The stock has derated over an extended period, with earnings compounding much faster than the share price, which is the mechanical reason the multiple has compressed.

The catalyst chain is twofold. First, the board's decision to open an independent investigation followed reports that Huang was the target of a foreign intelligence effort. Nvidia has said Huang fully supports the review and will cooperate with it. Second, Klein pointed to post-election concerns as a separate drag on the multiple. Neither factor is a demand-side problem for Nvidia's products.

That distinction matters for how the market prices the event. The company's revenue engine and the leadership question are largely separable risks. The open-ended nature of the review is what makes them harder to separate in practice, because investors cannot date the resolution.

Klein described Huang as a visionary for Nvidia and for the wider technology and AI industries, and said investors regard him as irreplaceable. Nvidia has a deep bench of talent, he added, but the open-ended timeline of the situation is the market's biggest concern. That framing explains why a valuation argument alone has not yet stopped the selling.

The broader setup adds weight to the debate. Another strategist told CNBC that technology stocks as a group are trading at a lower valuation than the S&P 500 for the first time in more than a decade. That is a sector-level observation, not a single-stock one, and it gives dip buyers a second anchor beyond Nvidia's own multiple.

Data — what the numbers show

Metric	Level
NVDA price	$168.89
Session change	-9.51%
Intraday range	$165.89 – $174.65
Forward P/E (Mizuho)	Below 10x

The magnitude of the move is the first data point that matters. A 9.51% single-session decline inside a $165.89–$174.65 range means the stock traded through roughly $8.76 of intraday span, a wide band that reflects genuine two-way disagreement rather than one-directional liquidation. The shares fell about 4% on Monday, per the report, so the decline has extended across sessions rather than reversing.

The valuation number is the second. A forward multiple below 10 times, as Klein frames it, is the kind of level that usually signals a business in structural decline. Nvidia's earnings are growing fast enough that the multiple has fallen even as the share price moved. That is the arithmetic behind the word "cheap."

The sector comparison is the third. Technology as a group now trades cheaper than the S&P 500 for the first time in over a decade. That is a relative-valuation statement, not an absolute one, and it depends on the index and the sector basket used to construct it.

What the report does not provide is the specific forward earnings estimate underpinning the sub-10x figure, the identity of the second strategist, or the terms and scope of the board's investigation. Nvidia has not disclosed the review's timeline.

Analysis — what it means for markets and sectors

Nvidia's weight in the S&P 500 and the Nasdaq is the transmission channel. Headlines about the board review are likely to keep moving the indexes, not just the stock, because passive and index-tracking flows reprice the whole basket when the largest components gap lower. That is a mechanical exposure, not a directional call.

Second-order effects run through the AI supply chain. Companies positioned as Nvidia customers, suppliers, or peers carry correlated sentiment risk, because the market treats the AI trade as one narrative in risk-on and risk-off regimes. The report does not name specific tickers, so the exposure is described here at the theme level rather than the single-name level.

The counter-argument deserves weight. Klein himself acknowledged that losing Huang would be a significant risk, and an open-ended investigation with no disclosed timeline is exactly the kind of uncertainty that equity markets price harshly. A low multiple can stay low if the market cannot date the resolution. Cheap is not the same as catalyst-complete.

The second strategist offers the opposing case. His firm recently added Nvidia to its list of AI stocks to buy for next year, and he suggested the current weakness could prove a rare opportunity if leadership remains sound. He described Nvidia as one of the central companies in the AI revolution, if not the central one, and said he was confident the broader AI transformation would not be seriously derailed even if turbulence at the chipmaker continues.

Positioning sits between those two views. Dip buyers have a valuation anchor below 10 times forward earnings. Sellers have a timeline problem they cannot underwrite. The flow is likely to stay headline-driven until the review produces a date or a finding.

Outlook — what to watch next

The outcome and timing of the board's review are the two variables that matter most. Neither has a disclosed date, which is itself the market's stated concern. Any announcement on scope, findings, or Huang's status is the primary catalyst.

On price, the session range of $165.89 to $174.65 is the immediate reference. The low end marks where buyers stepped in during the sharpest selling; the high end marks where sellers took control. A close outside that band carries more information than intraday noise inside it.

The valuation itself is the third watch item. If the forward multiple stays below 10 times and earnings estimates hold, the discount Klein highlights either attracts buyers or persists. Whether technology's sector-level discount to the S&P 500 narrows is the read-across for rotation back into the group.

Frequently Asked Questions

What does a forward P/E below 10 times mean for Nvidia investors?

A forward price-to-earnings multiple below 10 times means the share price is less than ten times the earnings analysts expect over the next twelve months. Mizuho's Jordan Klein said such levels are normally seen at companies with structural problems or in long-term decline. Nvidia's earnings are growing faster than its share price, which is why the multiple has compressed even as the business expanded.

Why did Nvidia stock fall 9.51% today?

The report links the decline to the board's independent investigation, opened after reports that Jensen Huang had been the target of a foreign intelligence effort, alongside post-election concerns Klein cited as a separate drag. Nvidia has said Huang supports the review and will cooperate. The shares fell about 4% on Monday, so the move extended rather than reversed an existing decline.

Is Nvidia still one of the central companies in the AI trade?

One strategist cited in the report described Nvidia as one of the central companies in the AI revolution, if not the central one, and said he was confident the broader AI transformation would not be seriously derailed even if turbulence at the chipmaker continues. His firm recently added Nvidia to its list of AI stocks to buy for next year. Klein's view is that losing Huang would be a significant risk.

Bottom Line

Nvidia's sub-10x forward multiple is the buy case; the board review's undisclosed timeline is what keeps it unresolved.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.