Is Nvidia Stock a Buy Before Nov. 17? Here's What I'm Doing.

NVDA has sold off sharply after CEO Jensen Huang admitted to an affair with an alleged Chinese spy, a disclosure that has raised national security concerns. One Motley Fool writer argues the selloff is creating an entry point ahead of the company's Nov. 17 earnings report.

The bull case rests on growth and valuation. Q3 results are expected to show 91% revenue growth, and projections call for 70% growth in 2027. NVDA trades at 22.6x trailing earnings and 11x forward earnings, which the author describes as undervalued relative to both that growth profile and the S&P 500 average. The author's target: the stock could double by the end of 2027.

Interpretation: the gap between 22.6x trailing and 11x forward multiples implies the market is pricing steep earnings expansion. If the 91% growth figure holds on Nov. 17, the headline risk around Huang becomes the main variable, not the numbers. The national security angle is the unquantified piece of this setup, and it is where the downside risk sits.