A Mizuho analyst called Nvidia shares “ridiculously cheap.” What does he recommend doing?

Nvidia shares have become “ridiculously cheap” (“silly cheap”), said Jordan Klein, an analyst at the Japanese bank Mizuho, during a CNBC broadcast on November 10. According to him, Nvidia’s forward P/E ratio (price-to-earnings ratio based on projected earnings per share) has fallen below 10, something he “never thought he’d see.” Such a valuation is typically seen in companies with structural problems or whose businesses are in long-term decline, “and we know that’s not the case here,” Klein emphasized. He sees this as an opportunity for investors but warned of short-term risks against which “one cannot be fully protected.”

Nvidia’s earnings have long been growing much faster than its stock price, and the stock is becoming cheaper relative to those earnings, the analyst noted. Now, he said, the price also reflects considerable uncertainty—not only following the change in control of the U.S. Congress, but also due to the risk of the resignation of Nvidia’s long-time CEO, Jensen Huang.

On November 10, Nvidia shares fell 5.5% on the Nasdaq to $168.9. On the same day, Mizuho lowered its price target for the stock to $250 from $315, though even the new target is 48% higher than the closing price. In premarket trading on November 11, the stock partially recovered from its decline: by 5:00 p.m. Astana time, it had risen 4.3% to $176.

Nvidia’s board of directors has launched an independent investigation to determine whether Huang was targeted by foreign intelligence agencies. However, the board sees no reason to believe that national security or company secrets have been compromised. The main problem, according to Klein, is that it is unclear how long the investigation will last: “a week, a month, two months.” The analyst hopes it will take no more than six to eight weeks. Then, in early 2027, investors will be able to reassess the situation, knowing at least when to expect the results, he noted.

The CNBC host suggested that buying shares now could turn out to be “truly a once-in-a-lifetime opportunity”—provided that everything goes well with Nvidia’s leadership, “under him (Huang. — Oninvest) or someone else.” Klein replied that Nvidia has a strong talent pool, but in the eyes of investors, Huang is “irreplaceable.” “I don’t know what Plan B would be, and I don’t want to think about it,” the analyst said. In his view, a scenario without Huang is not factored into the stock price. “But people don’t like uncertainty,” Klein noted.

The consensus among 62 analysts, as reported by the financial portal MarketScreener, is “Buy.” Their average price target of $325.8 is 92.9% higher than the most recent closing price. Like Mizuho, Citigroup (to $285 from $315) and Wells Fargo (to $300 from $315) lowered their price targets on November 10.

Nvidia’s valuation remains “attractive,” according to Canadian bank RBC. On November 9, the bank maintained its “outperform” rating and a price target of $330. RBC expects Nvidia to report “another strong quarter” in its November 17 earnings release: revenue is expected to exceed market expectations by 3–4%, and the company’s revenue guidance for the next quarter is expected to be 2–4% above the consensus.

This article was AI-translated and verified by a human editor