Is Nvidia Undervalued?

It's been a brutal few weeks for Nvidia (NASDAQ:NVDA) investors. After reaching an all-time high of roughly $243 per share in early October, the artificial intelligence (AI) chipmaker has experienced an epic sell-off.

On Nov. 12, Nvidia stock crashed as low as $148.80 following the resignation of CEO Jensen Huang. Huang's departure follows revelations concerning two extramarital relationships, including one involving a woman suspected of ties to Chinese intelligence. Nvidia's board of directors has been investigating the allegations, which have not established that Huang compromised company secrets.

Chief Financial Officer (CFO) Colette Kress is now serving as interim CEO while Nvidia searches for a permanent replacement. The uncertainty has rattled investors. However, the resulting sell-off has created an interesting valuation opportunity.

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