Quote · Excess Returns
The Trillion Dollar Gap | Aswath Damodaran on SpaceX, AI and the Big Market Delusion
Where this was said
Nvidia, Micron, semiconductors, and the risk of peak cycle earnings
At 39:29 · chapter starts 38:36
The Mag 7 are shifting from asset-light software to capital-intensive infrastructure — a game they've never played. Damodaran praises Apple's restraint as the exception. [1] — Aswath Damodaran "The Magnificent Seven have never built 10-year infrastructure assets before. They grew rich by scaling with almost no reinvestment. Now the…" 39:30
The Magnificent Seven tech companies are fundamentally changing their character, moving from low-CapEx, high-margin businesses to capital-intensive infrastructure operators driven by AI investment.
The Magnificent Seven have never built 10-year infrastructure assets before. They grew rich by scaling with almost no reinvestment. Now they're building massive data centers that take a decade to depreciate but could be obsolete in five years. They're playing a game they don't know how to play — and Damodaran is watching their earnings reports very differently as a result.
Damodaran disclosed he personally owns five of the Magnificent Seven tech stocks and has held Amazon since 1997, illustrating his long-term exposure to these now capital-intensive businesses.
