NVIDIA's forward P/E ratio falls to 14-year low, shares down over 30% from record high

Odaily News: NVIDIA (NVDA.O) shares have fallen sharply recently, with its forward P/E ratio dropping to about 12x, the lowest level since 2012. After Jensen Huang's resignation, NVIDIA shares fell more than 4% on Thursday, down about 11% for the week and more than 30% from the record high set on October 6. In addition to management changes, the market is also concerned that AI data center construction may slow. NVIDIA CFO Colette Kress is currently serving as interim CEO, and the company is searching for a formal successor. Analysts still maintain expectations for strong earnings growth at NVIDIA, expecting chip demand to continue outpacing supply.

The market expects NVIDIA's October-quarter revenue to grow 92% year-over-year, with net profit exceeding $60 billion, up 89% year-over-year. NVIDIA will report earnings next Tuesday, and investors will focus on Kress's comments on the company's future performance outlook; her guidance may draw more attention than the earnings report itself.