Nvidia at 11X Earnings: Are Investors Getting a Good Deal? -Nvidia (NASDAQ:NVDA), Procter & Gamble (N

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 think, even compared to slower-growing consumer companies.

Nancy TenglerCEO and CIO of Laffer Tengler Investmentsis considering buying more Nvidia shares, arguing that investors may overlook 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 stark comparison between Nvidia and Procter & Gamble Co. (NYSE: PG), arguing that investors should question paying a significantly higher earnings multiple for a slower-growing company.

“We will buy Nvidia stock,” Tengler said in comments shared with Benzinga. “So at 11x eps, tell me. Would you rather own PG with 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 about 23 times earnings for Procter & Gamble, despite its single-digit growth, while Nvidia trades at about 11 times earnings. Data from Benzinga Pro shows Nvidia at about 11 times forward earnings and Procter & Gamble at about 24 times.

For investors, the distinction is important. A lower earnings multiple can provide a more attractive entry point if a company’s underlying growth remains intact. However, Nvidia’s valuation also reflects expectations for 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 weather earnings-related volatility.

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

Tengler acknowledged that Nvidia could lower its forecast as an insurance policy, but doesn’t think it would signal a significant deterioration in demand.

“We don’t think the demand is drying up at all,” Tengler said.

This distinction is important before profits. Nvidia will report its first results since Huang’s resignation on November 17, leaving its shares vulnerable if management offers a more conservative outlook. But a conservative forecast would not necessarily mean customers are reducing their spending on AI infrastructure.

A repurchase authorization also gives Nvidia the 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 wallet

Nvidia is already a top 12 holding among 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).

The addition to an existing position suggests that Tengler’s conviction extends beyond simply trading short-term profits.

For Nvidia investors, the upcoming report will test whether earnings growth can continue to support the stock’s valuation. Key variables to watch are management 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 start to fall.

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

Photo: PJ McDonnell on Shutterstock