The “Dean of Valuation” Says Nvidia Stock Could Plunge by 31%. Here’s My Contrarian Take on Why DeepSeek Could Fuel It to New Highs, Instead.

From Nasdaq: 2025-02-08 05:55:00

Aswath Damodaran, known as the “Dean of Valuation,” predicts a 37% drop in Nvidia’s stock price. This forecast has sparked debate among analysts and investors about the future of the chip giant and its place in the AI market.

The emergence of DeepSeek, a Chinese AI start-up, is causing a stir in the industry. Damodaran suggests that DeepSeek’s innovative approach could disrupt Nvidia’s dominance in the chip market, but the details of the start-up’s funding raise questions about its potential impact.

Despite concerns about Nvidia’s growth trajectory, major tech companies like Meta Platforms and Microsoft continue to invest in AI infrastructure. While uncertainties remain, many believe Nvidia will remain a key player in the AI industry.

Investors are questioning whether now is a good time to buy Nvidia stock, as shares continue to fluctuate. Analysts anticipate more clarity on the company’s future direction after its earnings report later this month.

The Motley Fool’s Stock Advisor team has identified 10 top stocks for investors to consider, but Nvidia didn’t make the list. Past performance suggests that following their recommendations could lead to significant returns over time.



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