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- Chart of the week: NVIDIA stock has been following a similar path as Cisco during the 2000 Dot-Com Bubble
Chart of the week: NVIDIA stock has been following a similar path as Cisco during the 2000 Dot-Com Bubble
Will NVIDIA give back the majority of the last 5-year gains?
According to Deutsche Bank analysis, NVIDIA shares have so far behaved exactly like Cisco during the 2000 Dot-Com bubble.
Back then, Cisco saw a ~4,000% gain to roughly $52 per share in 5 years before it hit the peak in March 2000 when the Dot-Com Bubble finally burst. Subsequently, in less than a year the stock declined by ~80% to around $10 per share.
Interestingly, it took over 20 years for the stock to exceed the 2000 peak.
By comparison, Nvidia has risen ~3,200% over the last five years before pulling back down by 21% over the last 3 weeks.
Will NVIDIA end up similar to Cisco? What is the probability of such a scenario? Please find the full analysis below:
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