Back in the 1990s, investors couldn’t get enough of Cisco. For younger Digest readers, this was a tech stock that supplied the “plumbing” of the internet (think routers and network switching devices).
From its Dot Com peak to its ensuing low, Cisco crashed nearly 90%. Eric points out that this collapse happened despite Cisco having nearly double the earnings power of what Nvidia boasts today.
The following chart from Eric compares Nvidia’s recent price run-up with Cisco’s ascent back in the 90s. It’s not exactly a “feel good” graphic.
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