NVDA
The setup
Nvidia keeps winning the AI arms race, but Wall Street may have already handed it the trophy, the confetti cannon, and the parade route. In this piece, Aswath Damodaran basically says the company is amazing — just not necessarily amazing enough to justify the kind of valuation the market is slapping on it.
Why investors should care
That matters because stocks don’t need bad news to fall. Sometimes they just need to be less perfect than perfection. When a name like Nvidia gets priced for near-mythical growth, the bar turns into a high-wire act without a net.
- If AI demand keeps ripping higher, bulls can keep the party going.
- If growth normalizes even a little, the multiple can get cranky fast.
- And if the market starts asking “how much good news is already baked in?”, that’s when volatility shows up wearing a fake mustache.
Big picture
This isn’t a business-model problem. It’s a valuation problem — which is often the more dangerous one when a stock has already become the market’s favorite caffeine source. Big picture: Nvidia can still be a great company and a tricky stock at the same time.