Benzinga·2025-11-18 11:38Group 1 - Aswath Damodaran, a finance professor, warns that Nvidia and Tesla are the most irrationally valued companies in the current market [1][2] - Nvidia's market capitalization is projected to exceed $5 trillion by 2025, but Damodaran argues that the expectations for its stock price are unrealistic [2][3] - Tesla's valuation issues stem from a lack of clarity about its business direction, leading to fundamental incoherence [3] Group 2 - Damodaran expresses concern that the top 10 tech stocks, which represent about 40% of the S&P 500's market cap, could lead to a broader market downturn during a correction [3][4] - He identifies Alphabet and Amazon as the least overvalued companies among major tech firms, suggesting they have clearer paths to monetization [4][5] - Damodaran is shifting parts of his portfolio into cash and collectibles, indicating a drastic change for a value investor, as he finds it difficult to identify undervalued tech stocks [5] Group 3 - Tesla's stock was down 0.38% in premarket trading, closing at $408.92, with a year-to-date increase of 7.81% [5][6] - Nvidia's stock closed at $186.60, down 1.88%, with a year-to-date increase of 34.91% [7]