6 hours ago 2

Analyst on NVIDIA (NVDA): ‘Everyone Is Confirming Demand is Crazy’

Fahad Saleem

Sat, Apr 26, 2025, 10:29 AM 6 min read

Aswath Damodaran from NYU Stern School of Business said in a latest interview with CNBC that while investors are “celebrating” positive results of a few major tech companies, the problems haunting these firms will take a while to show up in their results. However, Damodaran, also known as ‘Dean of Valuation,’ said it won’t be prudent to “give up” entirely on Mag. 7 companies.

“They can consolidate their advantage. In a weird way, again, all these troubles might play into the hands of the Mag 7, because the more troubles there are, the more flexibility gets rewarded. And as you pointed out, these companies are incredibly flexible, incredibly adaptable. We saw that with COVID, we saw that in 2022 with inflation, and I’m convinced you’re going to see it again. Doesn’t mean you load up on the Mag 7, but if you’ve never owned them, you had a chance to buy into at least one or two of them in the last month. You might have missed that chance, but the chance was there. So I wouldn’t give up that easily on the Mag 7.”

Damodaran said investors experienced a lot of “trauma” in April. He argued against reactionary investing and said that when investors respond to daily events and news cycles, they damage their portfolios.

“Maybe the best thing investors could have done is left at the start of the month, gone somewhere without internet service, and come back at the end of the month. Because everything we do is reactive, and often when you’re reacting to day-to-day events, you’re going to end up doing more damage to your portfolio than helping.”

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