NVIDIA’s Valuation and AI’s Negative Sum Game - with Aswath Damodaran | Prof G Markets 

Biggest lesson i learnt in 2022 in the NVIDIA’s market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

I have followed Aswath Damodaran for the past two decades. His insight and eloquence never ceases to amaze me.

More quarters and outlooks from big tech names, powered by Nvidia (which has more chips than we thought!), as well as this trader FOMO, may lead to renewed buying strength in markets in September and October. I want to invest more than $300k, but I'm not sure on how to mitigate risk

Its quiet interesting how we reject the reality of our situation and expect to be able to observe it, control it and even change it. I used to be financially depressed until I read a book that made me realized that the secret to making a million is making better investments.

Big fan of anything Damodaran has to say. Thanks for sharing.

Just wow! A high quality and insightful convo. Thank you Prof's G/D

Aswath your are simply a GEM. A rare find when it comes to honest opinion. Thank you !

Amazingly wise man. Much respect

This is one of the smartest well grounded people I've seen interviewed and I've e seen many, loved his take on Larry Fink, I think its just a matter of time and the meltdown will begin and unreal opportunities will be there but most likely a year or more away. If you adjust for the Bank's loan portfolios and Bond portfolios there all broke, where can you go, please tell me.

I enjoy Aswath's insight. He's one of the few when I see him on any financial channel I take the TV off of mute.

Great interview, glad to have been recommended this channel.

Thanks to the channel and Professor Aswath Damodaran.

very impressive guy. actaully all three of you are. well done

Loved the breadth of the questions you asked. Doing so helped to demonstrate the same curiosity that Aswath must have had to begin exploring, considering, and ultimately formulating his responses. Rather than simply consuming, wouldn’t it be great if we all sought to genuinely pursue well considered responses. I’m preaching to myself here (but maybe doing so well be of benefit to others as well.

Thank you for arranging this amazing informative interview ! Excellent stuff.

Wow, exceptional guest. Thank you.

Prof AD should have shouted the risk safe story during 20-21. As I tuned into his on line lecture series for a couple of years, I found it too technical for the average person but he is brilliant.

Excellent guest! Thank you for sharing your thoughts with us Aswath.

I haven't heard Aswath before. I think he's really insightful and perceptive. I think he thinks the way Buffett thinks, which is a compliment in my book.

Quality check.... the chart posted in complementing Aswath's commentary about bitcoin being correlated to the stock market shows their performance during the first half of 2021...

Two of my favorite people!

Great great talk. I will have to scour the web for his blog

23:16 Love the talk about the Dark Dide of Disruption and how cheap capital (VC money) destroyed some businesses, like taxis, before a truly viable, profitable alternative had been created.

Stupendous! Incredibly wise. This is wisdom at its peak?

Experts have no idea and most people are sheep. Aswath, great points.

At the end where he says “Good news is going to be bad news and Bad news is going to be good news” has perfectly described the macro environment for the last 2 years. 🎯 Almost every time there’s an earnings beat on my stocks, the stock price dips and vice versa.

Brilliant to have Prof D on the pod … amused by his dismissal of ‘experts’ and preferring markets!

Prof Damodaran (not Galloway) is a treasure 😊

Thank you for this important information

Truly impressive for Dr Damodaran to admit he is human and inconsistent, even though he made a killing in NVDA stock

Great question about SNAP, very interesting stock IMO.

Damn, this guy is spot on. Sorry to say I had never heard of him until now.

What are those companies that are currently undervalued???

A great channel. One of the best videos.

Great interview! Especially liked the part where Aswath takes down Larry Fink :)

I’ve basically had Palantir, C3 ai, Nvidia on a watchlist all of these have performed above 57% in 1 year I guess it is a good time to buy in on them or have I missed? New to investing, happy to discuss.

Prof Damadaran, what about the partnerships NVDA is getting into in exchange for H100’s?

great podcast!

I love Aswat!! thank you!!

Good that you tell that you are excited. I did not notice. 😄

I like at 8:35 Scott easily dismantled Aswath's critique of buying Nvidia at an "overvalued" price. Overvalue is subjective when it comes to certain companies.

Love this guy. Very knowledgeable

Great talk by Aswath

well its over $700 now, i bought in at the $400 price point on fomo, but if i had listened to this i would not have done it, ignorance sometimes can work in your favour

Great Insights Aswath

Simply Superb

Watching it @ 1.5 X playback speed . This is the sweet spot for this video 🙂

Check out Prof Damodaran's expression at 28:40 when told that Larry Fink said Bitcoin is digital gold. 🤭

Selling half of your position is one of the best ways to leg out of your positions

I have to say that this episode is a real jewel

Love his opinion on Larry fink

Nvidia has had 2 near death experiences ...thanks Prof. Damodaran!

Great video 👍🏻

I got nvda in 2017 because they had best gaming processor. Invest in what you know.

Masterclass

Impressive takes - calling balls and strikes!

How do I mimic this guy’s portfolio?

aswath is very smart

Love this guy, a great interview.

excellent

If AI is really shorthand for computing that uses automated processes to distill data into highly parallelizable algorithms via matrix math, which is what GPUs use, then nvidia is in a good place. Given the potential slowing of moores law, it feels like these kind of parallel processors are going to be very important for a long, long, time. HOWEVER, everyone is jumping on the 'AI' train in the LLM sense, and there is an overestimation of it's potential use cases and applications. I don't think it will replace as many jobs as the media is piping up. The only reason LLMs work is because the internet provided a relatively structured limitless NLP data source, that does not apply to all of the really valuable uses for AI, such as highly specific skill niches and the computer vision approaches nvidia researches. For that you need more 3D visual data, and for that you need more relatively high-marginal cost (compared to internet/software) networked camera hardware in the world, which we do not yet have. The real issue I've seen from the inside is that, even with these new technologies, entrenched companies are not changing their culture/processes fast enough. In a capital-poor environment startups (who would use these new tools to structure their organization and culture with extremely minimal friction) are produced in less quantity. Thus the effective sticky adoption rate is going to be not so high.

Yoooooooooo business dream team! What a crossover

You should've asked hime about LEI index in deep recession territory rather than Yield curve inversion.

Shoutout to the Altcoin Daily community! $ESX tokens are gearing up for their presales and launch, and I'm loving their vision of tokenizing real estate. Keep an eye on this one - it's got potential!

Awesome...too short.

He speaks well.

The word “narrative” has now become a catch all term for unpredictable upside that caught everyone unawares.

This is how people misses out of great upside, fear spreading and I often see the behaviour from people who mentions that “hey I am not affected as I sold my shares “ but I think it’s to high valued yet they are all working today. You think being rich will give you more time and freedom yet this people are full time workers at some university.

The article may cite Aswath Damodaran's views and research to support the analysis of NVIDIA's valuation and artificial intelligence. There may be references to his research methodology and his expertise in finance.

Also what he does not mention is the stock market “internal mechanics” has self created some of our cyclicality…he can “guarantee” there “revaluation” in the future…

100% truth

He said "I can almost guarantee it" - PhD or not they all end up sounding like FURUs but nonetheless great insight on new market discovery

when was this interview recorded?

What does Tom Lee say about NVDA?

Didnt Damodaran a couple of months ago said on CNBC he would not own Nvda at these prices. Well it turns out he owns Nvda though he sold half his position

What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?

Question: Is Dr. Damodaran taking into consideration the use of Nividia chips in AI military use coming over the next decade? The US military will be spending a fortune on AI weapons... Please advise. Thank you.

Great podcast, but I do miss the more traditional prof g markets podcasts

I think some of the questions asked are silly; e.g. how would a finance prof know whether it would be wise for NVDA to vertically scale?

Thank you for bringing Prof. Damodaran, Prof G.! It was a great interview.

The heart follows the mind. What is it you make (besides money)? This is where your heart is. Markets are for those who won't or can't make things; living second removed from real struggle. Safe? This is the great depravity of our age. We have lead Americans to the gaming table, while work becomes denigrated and wagering becomes the road to wealth. -Dennis Kucinich

An absolutely awesome podcast, thanks so much for your incredible insights Aswath, and the Prof G team for your excellent knowledge sharing endeavours.👏🏼👌🏼🇿🇦

8:00 I think people often overlook a key element of what make Nvidia a juggernaut over an AMD and thats the middleware market. Nvidia has put a lot of effort into developing and supporting robust firmware/middleware so that software developers can really maximize. Just look to gaming and see how bad an AMD driver is compared to Nvidia.

I'd not trade 1 Aswath with 1 Billion Cramers. Thank you Aswath. I've learned from you how to stay calm, rational and open minded. Now only if some profits would follow.....

The crispr technology could maybe become a market by itself one day

"....Fink and the experts have no idea what they're talking about." Couldn't agree more. And these fools, so many of them, are shaping our reality. Madness.

What I wanted to know is his CAGR, that’s all that matters

5:10 - starts about nvidia

nvdia going to $800 !!!! Don’t miss out

Amazon from day one was ‘could happen story’! It has surprised everyone from a book store to becoming a tech behemoth, so what is surprising about NVDA or TSLA. Having exuberant valuation ? Just find the right price and jump in. Lesson learned from living through 2018 when nvda corrected 40% due to inventory buildup and crypto cracks.

28:51 someone gonna remix that dis on Larry Fink👏

Duh!! How could Prof G not know that San Diego is in "Southern" not Northern California?

How was Greece? Young man ? 👍🇫🇷🇺🇸

uber was good, the ux improvements have been major even if price point is similar

Analysis always decry BTC as not being used, and no value. Mkt will decide per his statement. Lets see Aug 23 Nvidia earnings release if his short term 50% outlook sale was a good decision.

If everybody has it, no one has it. - insight!

I loved the Larry Fink insight. He is a guy with an $11T megaphone!Now that was digital gold

I named my rouge on balders gate 3 aswoth damodaran

7 months later NVDA stock is at 919 dollars. Aswath clearly does not understand this space.

I think very few people understand the size of AI .