Wall Street’s ‘Dean Of Valuation’ Says Nvidia Stock Is ‘Priced To The Point Of Insanity,’ But These 2 Magnificent 7 Stocks Can Be Bought Right Now

In a recent interview, NYU finance professor Aswath Damodaran, who is commonly regarded as the “Dean of Valuation,” discussed the valuations of the so-called Magnificent Seven stocks. In his interview, he noted that many of the stocks are overpriced. Damodaran specifically pointed out that Nvidia’s stock price has reached levels of “insanity” and is significantly overvalued based on its current earnings and cash flow potential. Despite Nvidia’s strong performance in the past, he believes it is now too expensive to justify its current price of over $682.

Conversely, Damodaran highlighted that Apple and Tesla present more attractive buying opportunities within the Magnificent Seven group. He mentioned buying Tesla at $180 recently and remains optimistic about Apple’s potential, viewing it as a “slow-growth cash machine.” According to Damodaran, both Apple and Tesla offer better value compared to other tech giants, making them reasonable buys at their current prices.

In summary, while Damodaran views the broader tech group as generally overvalued, he sees particular promise in Tesla and Apple for investors looking to enter the market.