The AI ​​business just collapsed. Here is the price at which I would start buying Nvidia.

When OpenAI commercially launched ChatGPT in November 2022, few investors predicted the extent to which artificial intelligence (AI) would reshape the stock market. Perhaps no company has benefited as much as Nvidia (NVDA -3.74%).

Between the end of 2022 and the end of 2025, Nvidia’s stock price increased tenfold, transforming the semiconductor designer into one of the most valuable companies in the world. The rally reflects insatiable demand for its graphics processing units (GPUs), which have become essential infrastructure for training and deploying generative AI models.

However, 2026 presented an entirely different story. After hitting an all-time high of around $243 per share in October, Nvidia experienced a seismic sell-off. On November 12, Nvidia stock briefly fell below $150 following the resignation of CEO Jensen Huang.

The question now is whether Nvidia’s scandals mark the start of a broader collapse of AI values. While I think investors should prepare for increased volatility, I also view the selloff as an attractive long-term buying opportunity.

Image source: Getty Images.

Nvidia’s meteoric rise gave birth to the AI ​​revolution

Nvidia’s evolution from a gaming GPU maker to a leader in AI infrastructure is historic. The company’s chips have become the preferred hardware for training generative AI models, while its CUDA software platform has established a powerful competitive advantage by keeping developers locked into its ecosystem.

As demand accelerated, Nvidia introduced successive generations of computer architectures, including Hopper, Blackwell, and Vera Rubin. This rapid pace of innovation has helped drive continued spending commitments from hyperscalers like Microsoft, Amazon, Alphabet, MetaplatformsAnd Oracle.

Nvidia hasn’t been the only beneficiary of the growing demand for AI chips. Broadcom And Advanced microdevices have also attracted investors seeking additional exposure to AI semiconductor stocks. Additionally, cloud computing providers have benefited from demand for AI infrastructure and services, while enterprise software companies like Palantir Technologies are now well positioned to benefit from the sovereign adoption of AI.

Beyond the tech industry, utilities, energy producers and electrical equipment manufacturers are also attracting attention as data centers require ever-increasing amounts of power. In other words, Nvidia has sparked an investment theme spanning multiple sectors. This interdependence is precisely why the recent selloff is important.

Why Nvidia’s problems could spread to the entire market

In recent days, scandals involving Huang and his personal relationships have intensified. On November 12, Nvidia announced that Huang had resigned as CEO and that CFO Colette Kress would assume the role of interim CEO.

This development undoubtedly introduces uncertainty to company strategy, customer relationships and future execution. However, Nvidia was already facing pressure.

Investors are wondering whether hyperscalers can generate adequate returns on their investments in AI infrastructure. At the same time, the midterm elections also introduced uncertainty over possible regulation of data center construction and electricity costs.

These concerns could have implications beyond Nvidia, given the “Magnificent Seven“ represent almost a third of S&P500It is (^GSPC -0.91%) total market capitalization. If investors begin to reassess AI-related growth assumptions in big tech, the resulting selling pressure could send major indexes lower.

The price I would pay for Nvidia stock

Despite the current discourse around Nvidia, its valuation has become interesting. As of November 12, the company’s forward price-to-earnings (P/E) ratio hovered around 11, a sharp reduction from its historical valuation.

Nvidia is significantly larger and more profitable today than it was during previous phases of the AI ​​revolution. Huang’s departure poses a legitimate succession risk, while deceleration in hyperscalers’ spending could erode future profits.

However, I would be particularly interested in Nvidia, around $155-160 per share. Based on Wall Street’s FY2028 earnings per share (EPS) estimate of $15.91, this price range implies a valuation of 9.7 to 10.1 times earnings.

NVDA EPS estimates for current fiscal year data by YCharts

Ultimately, savvy investors can distinguish between a deterioration in a company’s fundamentals and a change in market sentiment. Although the AI ​​sector will likely see some turbulence in the near term, Nvidia’s long-term investment thesis remains compelling for now. If Nvidia continues to deliver earnings growth, the current uncertainty could end up looking like an attractive opportunity to buy the dip for patient investors.