The Prof G Pod with Scott Galloway

Prof G Markets: NVIDIA’s Valuation and AI’s Negative Sum Game — with Aswath Damodaran

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Aug 14, 2023
Aswath Damodaran, a renowned finance professor at NYU, shares his insights on the current tech market and NVIDIA's valuation. He discusses the intriguing balance between AI's rise and its potential to squeeze profit margins across industries. Damodaran also highlights the psychological nuances of investing, reflecting on his own decisions with NVIDIA shares. He emphasizes the importance of strategic investing in a rapidly changing landscape, where select sectors may present overlooked opportunities despite rising interest rates.
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INSIGHT

Tech Rally Nuance

  • Tech's 2023 rally is a selective rebound of larger, profitable tech companies.
  • It's not a broad recovery of risk capital as seen in previous tech booms.
INSIGHT

NVIDIA's Valuation

  • Aswath Damodaran bought NVIDIA in 2018, recognizing its opportunistic nature.
  • He believes NVIDIA's current valuation prices in yet-unseen future market dominance.
ANECDOTE

Tesla's Volatility

  • Aswath Damodaran compared Tesla's stock behavior to a 'manic depressive'.
  • He suggests that narrative-driven valuations can lead to overshooting and undershooting.
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