NVIDIA’s Valuation and AI’s Negative Sum Game — with Aswath Damodaran | Prof G Markets

Market Sentiment

Scott Galloway and Aswath Damodaran discuss the current market sentiment, noting that while markets have rebounded, risk capital remains cautious. Aswath points out that IPOs, venture capital, and high-yield bonds have not seen the usual surge, suggesting a potential delayed reaction in the second half of the year 1. He emphasizes the need for a more focused approach to risk capital, moving away from the excesses of the past decade 1.

I don't think risk capital is going to go back to the way it was in the last decade. And as I said, that's not a bad thing. I think it's going to be much more finessed and focused than it used to be.

--- Aswath Damodaran

Aswath also critiques the conventional wisdom around market indicators like the yield curve, expressing skepticism about their predictive power 2.

   

IPO Optimism

The discussion then shifts to the IPO market, where Aswath Damodaran expresses cautious optimism for the second half of 2023. He highlights that while the first half of the year has been strong, the expected surge in risk capital has not yet materialized 1. Aswath hopes that future IPOs will focus on companies with viable business models rather than speculative ventures 1.

If you're going to see IPOs, they are going to be businesses that have at least some kind of business model.

--- Aswath Damodaran

He also discusses potential changes in how companies go public, noting that shifts like direct listings may take time to become mainstream 1.