In the late 1990s, the dot-com bubble was fueled by Cisco’s stock price and internet networks. Cisco’s stock price rose exponentially before peaking and eventually plummeting, with a slow recovery over the next two decades. Now, Nvidia is at the forefront of the AI bubble, with its market capitalization surpassing even Europe’s main stock exchanges. Its value has skyrocketed since October, making it the most valuable stock in the world at $3.3 trillion. However, experts warn of the dangers of such extreme market concentration, as Nvidia accounts for 34.5% of the S&P 500’s profitability in 2024. While AI technology holds promise, some argue that the current hype may not be sustainable in the long run. As history has shown, all bubbles eventually burst when the supply of new investors dries up. The fast rise of Nvidia’s stock price may follow a similar trajectory to Cisco’s, rather than continuing to climb indefinitely.
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https://www.icis.com/chemicals-and-the-economy/2024/06/stock-market-bubbles-follow-the-same-pattern-as-nvidia-and-cisco-confirm/
The Economy Shows Pattern of Stock Market Bubbles, Confirmed by Nvidia and Cisco – Insights from Chemical Industry
