TECH - Nvidia Shares Could Double Or Triple Says Wharton Professor Drawing Parallels To Cisco's Dot-Com Boom: 'There Could Be 2-3X More Upside' | Benzinga
Wharton School finance professor, Jeremy James Siegel, has suggested that Nvidia (NASDAQ:NVDA) shares could double or even triple, mirroring the trajectory of Cisco (NASDAQ:CSCO) during the dot-com bubble, as Nvidia continues to drive the U.S. equity market to new heights.
What Happened: Nvidia’s stock has been a significant force behind the latest stock market rally fueled by the AI boom. The company’s high-end chips, essential for AI services like ChatGPT, have seen unprecedented demand, leading to explosive sales growth, reported Investing.com.
The company’s graphics processing units (GPUs) dominate the market, holding an estimated 80% share. With superior efficiency in AI-specific tasks, Nvidia’s GPUs outperform more versatile central processing units (CPUs) produced by firms like Intel (NASDAQ:INTC). Nvidia’s stock skyrocketed over 270% over the past year, and this year alone, it’s up 82%, broadly outperforming the market.
Nvidia’s rise has drawn parallels to the dot com bubble of the late ’90s to early 2000s, a period of excessive speculation in internet companies leading to rocketing stock prices. During this time, Cisco became one of the most valuable companies in the world by market capitalization, showcasing the period’s investment fervor in ...