Monetary Matters with Jack Farley U.S. Stocks Are Overvalued, But Not In A Bubble | Professor Aswath Damodaran on Equity Valuations, AI Data Center Boom, and “Big Market Delusions”
44 snips
Jan 25, 2026 
Aswath Damodaran, NYU Stern valuation expert, offers a clear, skeptical take on markets and AI. He says U.S. stocks look richly priced without a bubble. He separates AI architecture winners from speculative LLM bets, explains trimming long-held winners like Nvidia, and warns that broad AI adoption may boost consumers while squeezing corporate margins.
AI Snips
Chapters
Books
Transcript
Episode notes
Market Priced For A Benign Path
- The S&P 500 is richly priced and pricing in a benign economic path.
- Many political, economic, or war risks are not priced into current valuations.
Big Change Breeds Overconfidence
- Big technological disruptions always generate overoptimistic waves of companies and capital.
- That selection bias creates collective overvaluation and inevitable corrections.
Architecture Versus Product Uncertainty
- The AI 'architecture' (chips, data centers) is the low-uncertainty part of the cycle.
- The true uncertainty is which LLM-powered products and services will find paying customers.
