Nvidia (NASDAQ: NVDA) stock looks really cheap at the moment. After a fall back to $179, the chip name is sporting a forward-looking price-to-earnings (P/E) ratio of just 11 (using the earnings forecast for next financial year).

Is now the time to load up aggressively on this legendary tech winner? Let’s discuss.

I was wrong about Nvidia

When Nvidia was trading in the $210 to $240 region recently, I was really bullish on it. The stock had gone through a period of consolidation, and with revenues still soaring, I thought it was only a matter of time until it spiked up to $300.

It hasn’t played out that way though. All of a sudden, it has crashed below $200 to $179.

Why has the stock tanked?

It’s easy to see why. With the Democrats securing victory in the recent US midterm elections, there are concerns that brakes will be applied to the US data centre buildout.

Meanwhile, it has just come to light that Nvidia’s board is investigating CEO Jensen Huang over an affair with a suspected Chinese Spy. This is a mess on multiple levels.

Was national security compromised? Will Huang be able to remain CEO? Could the company still have success without him? Does he have a prenup? Will he have to sell a ton of stock to pay out his wife in the event of a divorce?

These are some of the questions people are now asking. All of a sudden, there’s a fair bit of uncertainty.

I’m still bullish

Assuming that Huang does remain CEO (and he may not), I reckon there’s an attractive opportunity here at present. Because I think Nvidia will continue to grow at a rapid pace in the years ahead.

This isn’t just a play on generative AI chips. It’s also a play on self-driving cars, robotics, and other forms of physical AI. And make no mistake, these technologies are coming.

In terms of forecasts, analysts have pencilled in revenue growth of 90% this financial year and 70% next. So, the company is expected to continue having success in the medium term.

To be able to invest at a P/E ratio of just 11 is a gift, to my mind. At that earnings multiple, there’s a ton of value on offer.

Attractive risk/reward near $180

Of course, it’s not a guaranteed winner from here because there are numerous risks to the bull case.

Looking beyond all the Jensen Huang-related mess, a major risk is competition from the hyperscalers themselves. Amazon and Google have their own AI chips now.

Another threat is competition from AMD. It’s now having a lot of success in the data centre space, meaning Nvidia’s high market share is at risk.

You’d have to think a lot of risk is priced in at the current low valuation, however. Ultimately, the risk/reward skew near $180 looks attractive to me.

Given the low valuation, I think the stock is worth a look right now. That said, buying aggressively could be a little risky as there is uncertainty around Jensen Huang and the CEO position.

Should you invest £5,000 in Nvidia right now?

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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Edward Sheldon owns shares in Nvidia and Amazon.