Why Aswath Damodaran Thinks Nvidia Stock Is Only Worth $240

NVIDIA Corporation (NVDA)
NASDAQ
16
2
0
SG
Stock Geek
NOV 7, 2023

Aswath Damodaran thinks Nvidia is only worth $240 a share. That’s almost 50% LOWER than it's price. Here’s some reasons why he may consider it overpriced. 👇

1) Nvidia is selling for 32 TIMES the current revenue of the business. Yes you read that right REVENUE not profit.

2) Nvidia is selling for 101 TIMES the profit of the business.

3) Competition is increasing & it’s not the competition you want to compete with. Google, Apple, Microsoft & Tesla are actively investing in AI Chip research.

4) Nvidia’s CEO Jensen Huang has sold $100 million of his own shares recently.

5) Over the last 3 months insiders sold $276 million & bought exactly $0.
6) Yes AI will be huge in 15 years time. Just like in 2000 computers were set to be huge. But from 1999 to 2016 Microsoft shareholders made EXACTLY 0% RETURNS.