Aswath Damodaran, the NYU Stern finance professor widely known as the “Dean of Valuation,” has issued a stark warning regarding the valuations of top tech giants, specifically naming Nvidia Corp. (NASDAQ:NVDA) and Tesla Inc. (NASDAQ:TSLA) as the most irrationally valued companies in the current market.

Nvidia And Tesla Are The Most Irrationally Valued

Speaking on the Prof G Markets podcast on Nov. 14, Damodaran expressed deep skepticism about the current pricing of AI darling Nvidia, which has seen its market capitalization soar past $5 trillion in 2025.

According to Damodaran, the math behind the chipmaker’s stock price simply “does not hold up to scrutiny.”

“You’re looking at the greatest company ever, delivering 80% gross margins in perpetuity on revenues that are going to be a trillion dollars or more,” Damodaran said, breaking down the implausible expectations baked into Nvidia’s stock. “None of those things hold up to any kind of scrutiny.”

Damodaran placed Tesla in the same “irrational” category, though for different reasons. While Nvidia's valuation suffers from mathematical overreach, Damodaran argued that Tesla's problem is fundamental incoherence.

“I'm not even sure what Tesla is as a company anymore,” he noted. “I can't tell you what the story is because I'm not sure Tesla knows what ...