NVIDIA Watch posted an update
Aswath Damodaran has filed his verdict on Nvidia, and it comes in two halves. The NYU Stern professor known as the dean of valuation calls the chipmaker an 'awesome company' whose shares are nonetheless priced as the 'greatest company ever', per a Thursday Yahoo Finance report.
Why it mattersThe distinction is the whole argument. A wonderful business and a wonderful investment are different things, and the gap between them is the multiple. Pricing that gap is Damodaran's career. It settles nothing in a week when Nvidia's valuation has been argued from every side. But when valuation's most quoted academic says the price assumes perfection, the burden of proof shifts to the bulls. Is Nvidia priced as the greatest company ever, or does even that undersell what the AI build-out needs it to be?
Discuss: Is Nvidia priced as the greatest company ever, or does even that undersell what the AI build-out needs it to be?
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