This article first appeared on GuruFocus.
Ed Yardeni sees the selloff following Jensen Huang’s resignation from Nvidia (NASDAQ:NVDA) as a buying opportunity for AI stocks. The Yardeni Research president expects the investment boom to continue under interim CEO Colette Kress. His call hinges on whether Nvidia keeps financing companies that are building out demand for its chips.
Nvidia shares fell as much as 14% Thursday before closing down 4.3% at $166.19. Huang’s departure puts the spotlight on how aggressively Nvidia will invest in its own customers. The chipmaker spent $42.4 billion buying equity securities in the first half of fiscal 2027, up from $1.25 billion a year earlier, according to its SEC filing.
Our base case is that NVIDIA’s financing strategy remains intact, Yardeni wrote in a note cited by TipRanks. Kress has served as Nvidia’s finance chief since 2013 and helped oversee its investments. Reuters reported that she also pushed back internally on some of Huang’s financing deals. If Nvidia becomes more selective, customers counting on its backing could have a harder time financing new computing capacity.
Yardeni also expects potential tightening of U.S. chip export rules to slow parts of the buildout while leaving the broader spending cycle intact.
Investors Takeaway
Nvidia’s Nov. 17 earnings call will give Kress a chance to spell out which financing commitments will continue and how she plans to evaluate new deals. Data center revenue, which reached $89 billion last quarter, and forward guidance will offer a read on near-term demand.
The more telling test will be whether customers can keep funding deployments if Nvidia pares back its support. Strong orders alongside more selective financing would bolster Yardeni’s case. Delayed projects or weaker guidance would raise questions about how much demand depends on Nvidia’s balance sheet.
