Nvidia’s Forward P/E Falls to Its Lowest Since 2012

Nvidia shares fell more than 5% in trading on November 12, 2026, bringing their decline for the week to about 12%. The shares have fallen more than 30% since reaching a record high on October 6. At about 12 times expected earnings, their forward price-to-earnings ratio is now the lowest since 2012. The lower valuation also reflects investor doubts about whether future earnings expectations can be met.

The decline followed the resignation of CEO Jensen Huang. Chief Financial Officer Colette Kress is serving as interim CEO while the company searches for a permanent successor. Investors are also concerned that a slowdown in AI data center construction could affect demand for Nvidia’s graphics processors.

Jensen Huang.（VietVance）

Erik Kratz, co-head of asset management and chief investment officer at Arena Private Wealth, said the CEO’s departure was a change in a key leadership position and did not mean customers would cancel graphics processor orders. He also noted that shares typically take time to find a bottom after a CEO’s sudden departure.

Nvidia plans to report results for the previous quarter on November 17. According to data from the London Stock Exchange Group (LSEG), analysts expect revenue for the quarter ended in October to rise 92% year on year and net profit to exceed $60 billion, up 89% year on year. These remain forecasts ahead of the results, and investors will also watch Colette Kress’s comments on the business outlook.

US Senator Jack Reed said on November 12 that he wanted Congress to assess whether Nvidia was “too big to fail” and whether trouble at the company could affect the US banking system and credit markets. He said greater transparency around the related transactions and an assessment of their potential impact were needed.

Source: VietVance