Nvidia's AI pathway is not as easy or open to profits as markets assume, says NYU's Damodaran

I think i agree with folks who are choosing APPL as their "Stock of the year". But my question is can Nvidia can be the next APPL in terms of growth this year? I've set asides $200,000 to explore profitable opportunities in the market.

Anyone who knows or has studied valuation, knows Aswath is the "King of Valuation". However, valuation doesn't take into consideration human behavior within the market. Many people see AI as the next evolution of tech, and how it can play a major role in the future of business. However, companies are still working to determine how AI can be utilized and implemented within their own business. Training an LLM on specific data is no easy or cheap feat. The market exuberance is there, it's reflected in the stock price, but adoption isn't yet. So whether NVDA is overvalued right now, will really depend on adoption rates, and the need for NVDA's chips. The market is excited about the technology, but businesses are still in the evaluation phase.

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can't be overstated. I've been trying to grow my portfolio for sometime now and it’s been stagnant, I would greatly appreciate any other suggestions.

In August 2023, Aswath Damodoran said NVDA was only worth $240. And he sold half of his position at under $470. You listen to him and you miss out on another double.

Dear Professor Aswath Damodoran, you are an eloquent speaker, a gifted educator. And the Dean of Valuation. Cherish your tenure. Please publish your track record and demolish the doubters.

I have a question. Can we find out the market value of a stock by this information. > " A 9% stock yields 8%." Or does this mean anything at all?

I read that Nvidia provides tech for crypto mining services/blockchain transactions. Could the current crypto pump be attributed to Nvidia’s great earnings and should I hold some crypto as well, cos tbh I’m having FOMO with the current Bitcoin price at 61k.

How on earth do you create earnings forecast for NVDA?

WHAT PROFESSOR SAYING IS - PROFIT MARGINS CANNOT STAY HERE FOR LONG, HOW LONG, THAT DEPENDS ON HOW LONG MARKET PREFERS TO BE STUPID; BUT WHEN MARKET GAINS ITS SENSES VALUATION WILL RETURN TO NORMAL QUICKLY.

It is based on Demand vs Supply, or based on confidence.

Excellent and thanks for this commentary. I too worked the floor during the late 90's --- at Montgomery Securities in SF (acquired by BofA). Your assessment is spot on....

And FYI. There are practically no short positions on Nvidia stock. Last I checked, it is 1.x%.  The selling is all institutional buyers getting out and likely already positioned themselves with options or other means for a downfall.

Amazing to see that he is still sitting there and predicting the next…

This guy is absolutely right, but bubbles can continue a long time, the fact that nvidia is going up actually proves the thesis correct. If it pulled back and stayed stable it would be less likely that irrational exhuberance was happening.

What you missed is that is this is the only company in history that captures the entire magnificent 7 ‘s capex

Didn't the professor sell his position at $400?

i like NVDA but can another foundry beside TSM make their chips ??

One question please! Is NVIDIA a safe buy to outperform the market this year? I'm tired of these new buys every week, just to make up some assets with low percentage on my $236k portfolio and try to keep everything around 10%.

the statement is the opposite to what MadMoney Cramer said: OWN it, don't trade it. He said it's a great trade? Besides, why is Tesla's forward P/E at 60 and NVidia's at 31 while NVidia's upcoming quarterly earnings is expected to be 4x and Tesla's is expected be 20% off?

If space exploration was the next big thing, and NVDA was the only spaceship that made space travel viable, what price would you put on it?