Nvidia Stock Is Like Cisco Stock Before the Dot-Com Crash? There Are Big Holes in This Theory
Recently, I've spotted several article headlines warning Nvidia (NASDAQ: NVDA) investors to be cautious because its stock's recent big run-up shares key similarities with Cisco Systems (NASDAQ: CSCO) stock's huge run-up in the 1990s before it crashed in 2000 when the dot-com bubble burst. In just one year, Cisco stock plummeted 77% after hitting its all-time high on March 27, 2000.
Let's dig into the qualitative reasons why the comparison of Nvidia now to Cisco in the late 1990s isn't a good one. A second article on this topic will focus on the quantitative reasons, including differences in profit margin trends and stock valuations.
The above subheading is a reference to Nvidia's business -- and yes, it's an exaggeration because artificial intelligence (AI) supercomputers can have thousands of graphics processing units (GPUs).
Source Fool.com
Cisco Systems Inc. Aktie
Die Community neigt bei Cisco Systems Inc. zu Buy-Einschätzungen, mehr als zu Sell-Einschätzungen.
Ein Kursziel von 56 € für Cisco Systems Inc. würde eine Steigerung von mehr als 20% gegenüber dem aktuellen Kurs von 43.84 € bedeuten.
