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

[@gingerkilkus]

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.

[@TomD226]

Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

[@lowcostfresh2266]

@@TomD226 I'm intrigued by your experience. Could you possibly recommend a trustworthy advisor you've consulted with?

[@TomD226]

Laurel Dell Sroufe is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@leojack9090]

@@TomD226 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@AsherDevang]

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

[@Fj8282haha]

Amazing money losing if u listened his joke

[@teslamozo5891]

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

[@maxs351]

Nvidia at 400 overvalued. Now its sitting at 740 😅

[@AbijithB]

@@maxs351 that's a different case, It can be highly overvalued.

[@Venom-x7t]

​@@AbijithB1300 now or 10 shares @ 130

[@robframe134]

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.

[@tommyrosales2019]

Amazingly wise man. Much respect

[@LDacic]

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

[@Fj8282haha]

Bet u missed out big $$$$$$ on his jokes

[@rolfjacobson833]

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

[@rodneybarington4483]

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.

[@a.j.4644]

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.

[@jessicasquire]

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.

[@Erikkurilla01]

May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well

[@jessicasquire]

What I think everyone need is an adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit. With this I feel anyone can basically achieve financial freedom

[@jessicasquire]

*STEPHANIE KOPP MEEKS* , That's whom i work with

[@jessicasquire]

You can glance her name up on the internet and verify her yourself. she has years of financial market experience

[@Erikkurilla01]

Thanks so much I was able to find her page and I already leave her a message

[@benitabussell5053]

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

[@DougRoberts-ir4mj]

Nvidia stock is roaring like many did during the 1990s bubble. But this time around, the hype around new chips is happening in a more mature demand environment.

[@mikebenz6467]

I have to say that this episode is a real jewel

[@ganeshbala]

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

[@ApplesOranges123]

Two of my favorite people!

[@briancase6180]

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.

[@bullpup1337]

well he is a literal professor on this stuff

[@HappyPandaPropertyServicesTV]

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

[@BigHenFor]

But Aswath Damodaran is an expert, Lol. As in life, in every profession there are good, bad, and indifferent practitioners. And even then you need to figure out what good actually means. And investors need to develop their own instincts, as it is they who are risking their own money, and not any expert. I respect Aswath and listen to his lectures even though the stock market is for me at least, is the least interesting one. Why? The Stock Market is like voting. If it changed anything fundamentally, they would ban it. It's become so detached from the real economy, it's more a morality tale in action. You know it's not going to end well. And Aswath is good because he's so grounded in the reality of the stock market and the valuation of businesses. And if I was 22 again, knowing what I know now, I'd still keep my feet on the ground.

[@pntiwari4937]

Thanks to the channel and Professor Aswath Damodaran.

[@chiefenumclaw7960]

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

[@dumberer8]

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.

[@TheGeorgeous]

More traders waiting to play the obvious price movements of good/bad news ?

[@thomas6502]

Wow, exceptional guest. Thank you.

[@venkynakhate5682]

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

[@LDacic]

It's not humble, it's common sense. He's in the common sense business as a value investor. Cocky people in finance are just baboons, nobody has a crystal ball.

[@ssiddarth]

Great interview, glad to have been recommended this channel.

[@valoriefalorie4223]

What are those companies that are currently undervalued???

[@andykopitske2997]

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.

[@MarkCicero]

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

[@future62]

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

[@bullpup1337]

he has a channel

[@simona4315]

Prof Damodaran (not Galloway) is a treasure 😊

[@kaliamunish]

Great talk by Aswath

[@JohnCorrUK]

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

[@TheFinnmacool]

Yeah that was great!

[@Venom-x7t]

​@@TheFinnmacooleven better thinking for myself and buying nvda

[@alexi2460]

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.

[@rocking1313]

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

[@mukd559]

Great question about SNAP, very interesting stock IMO.

[@ajkim1124]

Thank you for this important information

[@estring123]

aswath is very smart

[@geethanarayanan2896]

such a level headed explanation

[@macleanandrades4579]

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

[@erandeser5830]

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

[@indersingh1212]

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

[@Kev88-wf8no]

Lot of ppl missing what's right in front of their face

[@PapaDragon750]

close to 1300 now post split 129 per share… 24 aug 2024

[@11521562]

He is still holding half of the position dude. Not buying at more doesn’t mean selling.

[@andrewkavas3815]

Clearly… you missed the point

[@Jhippo2679]

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.

[@kaushalendraraomannava4578]

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

[@popinjay3000]

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

[@woowayinvs1736]

I love Aswat!! thank you!!

[@shivamgairola5958]

A great channel. One of the best videos.

[@sky301289]

He speaks well.

[@rahulchahal3824]

Simply Superb

[@manout-kidin8735]

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

[@SchmittycocoPop]

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

[@Budapest_Trader]

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

[@rickdeleroy]

How do I mimic this guy’s portfolio?

[@Theamanhanda]

Love his opinion on Larry fink

[@CeeRiplayis]

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.

[@PurvisTwiggs]

Good question. I have been watching other AI stocks like AMD, Broadcom and Marvell. I have a 100 grand to put into the markets now it has shown bullish strength but I am very skeptical.

[@irenatrulove]

Chief accountant sold 400k shares on 3rd August along with other 3 directors, over 40 million shares sold 3 days before earnings. Something smells bad. I say sell.

[@PurvisTwiggs]

@@marcoerrett Right, my question then is where should I allocate more of my contribution from my paycheck to in my 401k, Tbills and Bonds or stocks since the S & P has climbed 20% YTD?

[@CeeRiplayis]

@@marcoerrett how has that worked out for you so far?

[@irenatrulove]

@@marcoerrett Hi can I get a number to this Loren? Vanguard advisor takes forever to pick up, my patience wears thinner with each ring.

[@lpgoog]

Love this guy. Very knowledgeable

[@andrewkavas3815]

Everybody is clowning Aswath in retrospect. Nobody can see the future but his points are even MORE relevant now that the AI market (bubble) has risen even further. He’s simply saying it’s overvalued and expecting this level of growth to continue is not in line with his philosophy. He 7X’d his NVIDIA return! Everybody who’s disrespecting this man from their armchairs needs to look back to what they were doing in 2018

[@davidng2699]

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

[@maryhadda8420]

Bitcoin IS digital gold! Both are fundamentally worthless, and their value depends entirely on the Greater Fool theory. Actually, gold does have a few industrial uses, so it's actually worth something. People like to claim that bitcoin has value as a medium of exchange. That might be true for some kinds of illegal activity, but for above-board transactions, craptocurrency is far too unwieldy and unstable to be useful as a store of value.

[@dmach83]

His reply just proved to me that he actually doesn’t understand it at all …… And those are not Larrys words he borrowed them … no one trusts old Fink the Prof has that 100% spot on .. that part of the reply he truly knows the subject matter

[@shilpgandhi]

Great Insights Aswath

[@insydegroup]

Best way to know what kind of people Prof G respect is just to hear how often during the interview he talks. Silence equals respect?

[@tattarrrrattat]

Nice one - In conversation, silence equals respect.

[@bondi5000]

You don’t learn anything when you’re talking!

[@rezam87]

That’s exactly what I noticed two. His questions does go over two sentences and then he goes back to listening

[@bullpup1337]

yeah you know he is just ITCHING to hear what companies Aswath is liking… that is the REAL gold today…..

[@kylechwk]

​@@bondi5000knowledge speaks, wisdom listens - Jimi Hendrix, apparently

[@macbeth5891]

great podcast!

[@LittleKing150]

Yoooooooooo business dream team! What a crossover

[@M2Capital01]

Masterclass

[@scale_bar]

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...

[@SRQRay]

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

[@costelloj70]

Love this guy, a great interview.

[@WeaponGrade]

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.....

[@MorrisDugan]

Cramer is too much like Kramer on "Seinfeld." He's an admitted showman, whereas Damodaran is an academic analyst with practical experience who's not trying to harvest clicks and page views.

[@WeaponGrade]

@@MorrisDugan yea, but a showman impersonating a financial advisor that people take seriously is dangerous. Not to mention his annoying voice. My cat goes and hides every time he comes on.

[@chiragmehta8212]

@@WeaponGrade😅😅😅😅 smart cat

[@MorrisDugan]

@@WeaponGrade I wonder if you could make money by shorting the companies that Cramer pushes the hardest, especially when their share price is already very high.

[@robbrown4621]

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.

[@georgemalovrazich7390]

Impressive takes - calling balls and strikes!

[@dhananjayadasanayake5882]

Great video 👍🏻

[@acs2777]

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.

[@waynecsmith5145]

Thank you! I have realized this a long long time ago…and are high 6 figure earners…they usually spend to their limit of income…

[@ferdinandmagellan9210]

Money is addictive and work gives people meaning

[@RaphaelRRangel]

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

[@kevinl20082008]

Awesome...too short.

[@valoriefalorie4223]

5:10 - starts about nvidia

[@skibbydweez2647]

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

[@valoriefalorie4223]

You predicted right!

[@skibbydweez2647]

@@valoriefalorie4223 ALSO HAVE SMCI TO $2000 END OF FEB!!!

[@alyst115]

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.

[@TheFinnmacool]

"....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.

[@robin212212]

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?

[@maryhadda8420]

And yet his answer made perfect sense.

[@robin212212]

@@maryhadda8420 how do you know? Do you work in high-tech chip production?

[@Yahniboy]

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

[@pankajkulkarni3189]

when was this interview recorded?

[@aroundandround]

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

[@pjamesbda]

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

[@MorrisDugan]

I did a bunch of things until the pandemic and the $600 tax reporting reporting rule killed them. You're also not taking into account the disabled and the retired.

[@pjamesbda]

@@MorrisDugan - Yes, that is true. And yet, ideas and the creation of them is a tangible good. I was referring to riding the market waves, never giving a thought for the struggling Plebeians generating the excess. While at the same time, they languish over inequality and poverty - all the while they feed the machinations. We have not advanced for 2000 years or more. Stuck baking donuts for millennia. It's absurd.

[@MorrisDugan]

@@pjamesbda The workers should get a financial stake in their place of employment, as well as a living wage.

[@CannyVen]

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!

[@safol123]

excellent

[@bhawanisinghindia2287]

100% truth

[@AstaKristjan]

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?

[@BillAdamson-bp9ff]

All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.

[@Erinmills98]

@@BillAdamson-bp9ff Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The market looks very shaky. The bigger the red candles, the bigger the green ones. I have made over $280k in the last 4 months by investing through my FA

[@RickMckee-nq4ni]

@@Erinmills98 Wow. I've heard similar success story from people who work with advisors. How do I get in touch with yours, please?

[@Erinmills98]

@@RickMckee-nq4ni Absolutely, I agree, and the markets are currently in a frenzy. The greatest time to observe them, learn more about them, and take advantage of opportunities to strike is now. My F.A, "Michelle Christine Parker," who has witnessed hundreds of market cycles over the past three decades, taught me this. She has an intuitive understanding of how things move, why they move, and what will happen next..

[@AndrianWiener]

@@Erinmills98 This information is valuable. I quickly searched her full name and her website appeared instantly, showcasing her impressive qualifications. Thank you for sharing.

[@joshuatvernon]

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

[@Martinit0]

First cash flows should be arriving this year

[@robbrown4621]

What does Tom Lee say about NVDA?

[@jerry.norman.52687]

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.

[@m271-c1h]

Dude gives off wise vibes

[@robbrown4621]

I am bookmarking this video to come back to it in a year. I am betting against Damodaran and his NVDA valuation because I suspect he has not factored in the US military applications for AI coming down the road...

[@bvssrsguntur6338]

come back and let us know

[@rodneybarington4483]

most likely your wrong, you should sell everything you own and put into NVDA for a year.

[@robbrown4621]

@@rodneybarington4483 I have 70% of my stock holdings in NVDA already...

[@robbrown4621]

@@bvssrsguntur6338 I can do that but you can also make note of this date and the stock price of NVDA and see for yourself next year... :)

[@b33wong87]

I agree, everyone is so focused on how AI is going to affect the Tech industry but other industries have been shifting towards AI as well. I've heard friends on the Legal side talk about how AI is affecting them, AI is taking over the media with magazines, advertisements, high end fashion most likley will be using AI to enhance their photos. And what about the whole automotive industry? I know it will be later but the market will eventually bring in AI. Are these being considered?

[@l4k]

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

[@proskillr]

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

[@JohnCorrUK]

Meatier content and less whinging about @Elon - what’s not to like?

[@alphabusiness3871]

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.

[@gerrardhession2272]

S - how the hell do you only have 130 K subscribers ? If your health and interest continues you are gonna the Man in media . Your comments on family are superb . Thank you .

[@Kev88-wf8no]

This business channel, plus a business professor, missed an entire industry. I guess NVDA still carried their S+P index holdings😂😂😂

[@TechFreak51]

This is the same professor who said that when NVIDIA was at 450, it was setup for a decade ... 😂😂😂 !!

[@aconsideredmoment]

The best investing video or podcast I have seen in a long time. The most common sense since Thomas Paine!

[@theopillay9908]

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

[@waynecsmith5145]

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…

[@BodyByBenSLC]

10:00 the Elon bubble is going to burst, I am surprised it's lasted as long is it has. But now interest rates are no longer 0.2% hype and FOMO will run out. Short everything Elon touches.

[@stevechance150]

"Short everything Elon touches", said the Tesla shorter. Though SpaceX isn't publicly traded, it fits the description of something "Elon touches", and I wouldn't bet a dollar against SpaceX. He has reused one Falcon 9 booster sixteen times. Who else, company or government, has reflown a rocket to space?

[@Roan-xj1mg]

You came up with it yourself, or you just repeat what Scott says?

[@MrFuckinglogin]

@@stevechance150 ^ some weird nerd defending elon :D

[@kurniawanms2]

@@stevechance150 My money is on Zuckerberg. He will beat up Elon in a cage. That is one thing Elon will not touch. Zuckerberg

[@jcronkit]

That strategy has been a bear graveyard for years.

[@WiZ-vd9fs]

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

[@DesmondMiles333]

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

[@Yosemite25]

Ass-smear is a genius. I Listen to every word he says…….. and then do the opposite, and make a boatload of cash!!