Why Aswath Damodaran Thinks Nvidia Stock Is Only Worth $240
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.
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2) Nvidia is selling for 101 TIMES the profit of the business.
![](https://ca-investing-bucket.s3.us-east-1.amazonaws.com/1699340256884-fda3f42d-d60d-4be1-b8f9-f5fd756af625.jpeg)
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.
![](https://ca-investing-bucket.s3.us-east-1.amazonaws.com/1699340188563-2c22472a-c495-4dbc-a300-f914ebd1bf1e.jpeg)