NYU’s Aswath Damodaran Calls NVIDIA Corporation (NASDAQ:NVDA) a ‘Money Machine’
What is Aswath Damodaran's role at NYU?
Aswath Damodaran is a Professor of Finance at the Stern School of Business at New York University. He holds the Kerschner Family Chair in Finance Education and teaches corporate finance and equity valuation3.
Why are the 'Magnificent Seven' stocks considered valuable?
The 'Magnificent Seven' stocks are considered valuable due to their market dominance, consistent innovation, and larger cash reserves4. These factors contribute to their stability and potential for future growth, making them attractive options for investors seeking high returns.
What recent shift in opinion did Damodaran express about tech stocks?
Damodaran recently expressed a shift in opinion about tech stocks, stating that the "Magnificent Seven" tech stocks, including NVIDIA, have become "value stocks for investors who care about earnings and cash flows2." He believes these companies are the "money machines in this market," despite previously considering major tech companies to be overvalued.