'It's Not Been This Cheap Ever Before': Why Pete Najarian Bought Nvidia Stock Ahead Of Earnings

With NVIDIA Corp NVDA shares down nearly 45% year-to-date, one investor sees a value he just can't pass up.

What Happened: Market Rebellion co-founder Pete Najarian decided to buy stock in the semiconductor company after running some numbers on earnings expectations.

"It's not been this cheap ever before," Najarian said Wednesday on CNBC's "Fast Money Halftime Report."

Nvidia is currently trading with a forward price-to-earnings multiple below 30, according to data from Benzinga Pro. That's the main reason Najarian decided to buy the stock, he said.

See Also: Nvidia Announces New Liquid-Cooled GPUs: How It Will Double Data Center Computing Power

Najarian noted that buying stocks ahead of earnings can be "dicey," however, the companies that have fallen victim to earnings do not have strong fundamentals like Nvidia does, he said. Nvidia is set to announce its quarterly financial results after the market closes on Wednesday.

"I looked at what was going into this earnings call. I looked at the valuation. I looked at the free cash flow," he said, before deciding to buy the stock around $165 per share.

"This was not bought just because this was a $330 stock in November. That's not why I bought it," he said.

Najarian reiterated he bought the stock based on a combination of valuation and his expectations for free cash flows.

NVDA Price Action: Nvidia has traded between $151.76 and $346.47 over a 52-week period.

The stock was up 3.06% at $166.37 at press time.

Photo: courtesy of Nvidia.