Prof G Markets Aswath Damodaran Says There’s No Place to Hide in Stocks
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Nov 14, 2025 
Professor Aswath Damodaran, Kerschner Family Chair in Finance Education at NYU Stern, shares his insights on the current state of the markets and investment strategies. He discusses his concerns about potential AI bubbles and the feasibility of AI revenues justifying hefty investments. Damodaran identifies overvalued stocks like NVIDIA and Tesla while suggesting a shift towards gold and cash for more security. He urges listeners to cultivate uniquely human skills as AI reshapes the job landscape, emphasizing an adaptive approach to investing.
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Structural Change Breeds Bubbles
- Big structural changes (like AI) reliably produce speculative bubbles as overconfident actors and VCs create pods chasing the theme.
- Bubbles cause corrections and economic spillovers, but they are a recurring feature of technological change.
AI CapEx Masks Economic Weakness
- AI infrastructure spending propels current GDP growth but may mask recessionary trends without it.
- Pulling back that capex would reveal deeper economic weakness than prior tech bubbles did.
The $4 Trillion Payoff Gap
- To justify the AI architecture deployed so far, AI products/services must generate roughly $4 trillion in revenue or cost savings.
- Current AI revenues are tens of billions — far short of that scale — implying a large gap to close.