Wall Street's 'Dean Of Valuation' Thinks 'You're Setting Yourself Up To Lose' With Nvidia By Playing 'The Plausible Game' — Says This Is What Investors Need To Ask Before Getting In
Portfolio Pulse from Shanthi Rexaline
Aswath Damodaran, a respected NYU professor, expressed skepticism about Nvidia's (NASDAQ:NVDA) long-term investment appeal despite its current success in AI. He highlighted the company's overvaluation and the unrealistic revenue expectations needed to justify its market cap. Damodaran sold his Nvidia stake last year, citing concerns as a value investor. Despite this, he acknowledged Nvidia's potential for short-term gains but warned against long-term investment based on overly optimistic projections.
March 01, 2024 | 8:18 am
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Aswath Damodaran, a respected investor, expressed skepticism about Nvidia's long-term investment appeal, highlighting its overvaluation and the unrealistic revenue expectations needed to justify its market cap. He sold his stake, citing concerns as a value investor, but acknowledged Nvidia's potential for short-term gains.
Damodaran's skepticism and his decision to sell his stake last year could influence investor sentiment, potentially leading to increased volatility in Nvidia's stock price. However, his acknowledgment of Nvidia's short-term potential due to its AI prowess could mitigate some negative impact, leading to a neutral short-term score.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100