Why U.S. Stocks *Aren’t* In A Bubble (Yet) | Aswath Damodaran

Video Description

Learn more about the Fundrise Income Fund here: https://Fundrise.com/mm In this deep-dive interview, NYU Finance Professor Aswath Damodaran, the "Dean of Valuation," assesses the current state of the U.S. stock market, describing the S&P 500 as richly priced but stopping short of calling it a bubble. He explores the "big market delusion" inherent in the AI revolution, distinguishing between the profitable "architecture" of chips and the highly speculative future of Large Language Models. Damodaran provides a candid look at his own portfolio, explaining why he recently exited his Nvidia position after a massive run while continuing to hold Microsoft. He offers a sharp critique of "lazy" valuation metrics like the P/E ratio, arguing that investors must instead focus on cash flows and the shift toward buybacks to understand market resilience . Furthermore, he warns that while AI will benefit consumers, the resulting competition may actually lead to lower profit margins for most companies collectively. Finally, the Professor touches on the role of gold as something that is viewed as an "insurance policy" in a world where institutional trust is rapidly eroding. Recorded on January 15, 2026. Aswath Damodaran’s YouTube channel https://www.youtube.com/@AswathDamodaranonValuation Aswath Damodaran’s Website https://pages.stern.nyu.edu/~adamodar/ Aswath Damodaran on X https://x.com/AswathDamodaran Aswath Damodaran on LinkedIn https://www.linkedin.com/in/aswathdamodaran/ Follow Jack Farley on X https://x.com/JackFarley96 Follow Monetary Matters on: Apple Podcast https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez __ Timestamps: 00:00 Intro 00:40 Fundrise Pre-roll 02:04 "Big Market Delusion" in AI? 8:53 "Trillions of Revenue" Needed To Justify AI LLM Valuations (Large Language Models) 16:44 "No Place To Hide" In Stock Market If Correction Comes 21:35 Fundrise Midroll 22:32 Microsoft 26:17 Alphabet ($GOOGL) 30:02 Meta (Facebook) 31:34 Oracle Has "Gone A Little Off The Cliff" ($ORCL) 38:00 Tesla 41:45 AI Will REDUCE Corporate Margins, Not Increase Them 44:24 "Overvalued, But Not Bubble Overvalued" (Outlook on S&P 500 // US Stocks) 58:01 Gold 59:40 Fundrise Endroll #markets #damodaran #aswathdamodaran #deanofvaluation #valuation #stockmarket #investing #stocks #tesla #ai #nvidia #bubble