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Nvidia Sale
Damodaran's late-2025 decision to sell his entire Nvidia position — held for years through the AI infrastructure build-out — on the judgment that "you need too much to go right to break even."
The Nvidia sale is one of Damodaran's most-cited recent investment decisions and a worked example of his framework in action. He had held Nvidia for years, profiting from the AI infrastructure build-out that drove the stock from approximately $25 in late 2022 to over $140 by mid-2025. He sold the entire position by the end of 2025. His stated reasoning was not that he had lost faith in Nvidia's business — he explicitly considers it "a company that delivers" — but that the market price had reached a level that required nearly impossible outcomes to justify. "You need too much to go right to break even," he said. The sale is a textbook application of his pricing vs. valuation distinction: the price had moved beyond the intrinsic value, even under optimistic narrative assumptions.
In The You On AI Field Guide
The sale illustrates a discipline that distinguishes Damodaran's investment behavior from the dominant pattern in growth investing. Most growth investors hold winners as long