TradingKey – From its peak on October 6 to November 5, Nvidia (NVDA) shares experienced a cumulative pullback of about 25%. Over the span of a month, investor focus shifted from computing power demand growth to whether customers can afford the costs of sustained expansion. Subsequently, Jensen Huang admitted to an extramarital affair, sending the stock price down further to around $175.
A series of negative news has pressured valuations, but market earnings forecasts have yet to fall in tandem. This disconnect has also made whether Nvidia is already cheap enough a new focal point of debate.
Nvidia stock chart, Source: TradingView
The first shift occurred in market sentiment toward AI capital expenditures. In late October, Big Tech…
