Nvidia at 11X Earnings? One Wall Street Bull Says Investors Are Getting a Rare Bargain

Nvidia Corp. (NASDAQ:NVDA) shares fell more than 5% Thursday after CEO Jensen Huang resigned from the company, but one Wall Street bull says the chipmaker’s valuation has become hard to ignore: Nvidia could be cheaper than investors realize, even compared with slower-growing consumer companies.

Nancy Tengler, CEO and CIO of Laffer Tengler Investments, plans to buy more Nvidia shares, arguing that investors may be overlooking the opportunity at current valuations despite concerns surrounding the company’s earnings report next week.

Nvidia Versus Procter & Gamble: A Surprising Valuation Gap

Tengler offered a striking comparison between Nvidia and Procter & Gamble Co. (NYSE:PG), arguing that investors should question paying a significantly higher earnings multiple for a company delivering slower growth.

“We will be buying Nvidia stock,” Tengler said in comments shared with Benzinga. “So at 11x eps you tell me. Would you rather own PG at 23x single digit growth or NVDA?”

The comparison challenges the perception that Nvidia’s exposure to the AI boom automatically makes it an expensive investment. Tengler’s argument is that investors are paying roughly 23 times earnings for Procter & Gamble, despite its single-digit growth, while Nvidia trades at about 11 times earnings. Benzinga Pro data shows Nvidia at about 11 times forward earnings and Procter & Gamble at about 24 times.

For investors, the distinction matters. A lower earnings multiple can offer a more attractive entry point if a company’s underlying growth remains intact. However, Nvidia’s valuation also reflects expectations around future earnings, making sustained AI spending and demand critical to the investment case.

Record Buyback Could Support Nvidia Shares

Tengler also sees another potential catalyst that could help Nvidia shares navigate earnings-related volatility.

Nvidia added $150 billion to its repurchase authorization in late September, bringing the remaining total to about $235 billion, and Tengler believes management could step in to support the stock after its earnings report next week.

Tengler acknowledged that Nvidia could lower its guidance as an insurance policy, but doesn’t believe that would signal a meaningful deterioration in demand.

“We don’t think demand dries up. At all,” Tengler said.

That distinction is important heading into earnings. Nvidia reports on Nov. 17, its first results since Huang’s resignation, leaving its shares vulnerable if management offers a more conservative outlook. But a cautious forecast would not necessarily mean customers are pulling back on AI infrastructure spending.

A buyback authorization also gives Nvidia flexibility to return capital to shareholders, although it does not guarantee immediate purchases or establish a floor under the stock.

Nvidia Is Already a Major Portfolio Holding

Nvidia is already among the top 12 holdings across Tengler’s investment strategies and platforms, a list that also includes Broadcom Inc. (NASDAQ:AVGO), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Microsoft Corp. (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL).

Adding to an existing position suggests Tengler’s conviction extends beyond a short-term earnings trade.

For Nvidia investors, the upcoming report will test whether earnings growth can continue supporting the stock’s valuation. The key variables to watch are management’s guidance, commentary on AI demand and the pace of capital returns.

If demand remains resilient despite conservative guidance, Tengler’s valuation argument could gain traction. But a lower multiple alone won’t protect shareholders if earnings expectations begin moving down.

NVDA Price Action: Nvidia shares were down 5.61% at $163.99 at the time of publication Thursday, according to Benzinga Pro data.

Photo: PJ McDonnell on Shutterstock