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. Stock
With 11 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 56 € shows a positive potential of 27.17% compared to the current price of 44.04 € for Cisco Systems Inc..
