With the price of Nvidia Corporation (NASDAQ: NVDA) stock slowing down its previous gains, market participants are wondering what is next for the artificial intelligence (AI) and semiconductor behemoth, and others are recalling the price action of other stocks during the dot-com bubble.
As it happens, Nvidia’s price action resembles that of another technology giant – Cisco Systems (NASDAQ: CSCO) – which made a massive decline during the dot-com bubble, suggesting that history could repeat itself, according to the X post by the stock market analytics platform Barchart on February 20.
Indeed, CSCO was moving in a steadily upward direction, growing its price seven-fold from below a mere $10 to as much as $75, where it peaked right before the dot-com bubble burst in 2000, sending its price back to around the time its gains began in 1998.
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Should similar circumstances happen this way around, NVDA could end up in the price range between $100 and $200 from late 2022 to early 2023, considering it has made much the same advances since that period as Cisco did in the couple of years leading up to the implosion.
However, the specific factors that led up to the dot-com burst might not happen this way around as well, particularly considering that it was highly speculative investments that led to the crash in 2000 before investors realized many of these companies did not have viable business models.
Nvidia stock price analysis
Currently, Nvidia stock is changing hands at the price of $726.13, recording a slight decline of 0.06% on the day, gaining a very modest 0.02% across the week, but still holding onto the advance of 21.72% from the past month and growing as much as 251.55% in the last year.
In conclusion, Nvidia’s chart patterns do, indeed, eerily resemble those of Cisco during the dot-com bubble, but it is important to look beyond the price action alone and take into account other considerations, such as the company’s tangible successes in the near past and its technical analysis (TA).
For Nvidia, these factors are exceptionally bullish, including the still raging AI hype and its positive comparison to other stocks, as it has outperformed 98% of them in terms of their yearly performance, as well as doing better than 99% of the other 106 stocks in the semiconductor industry.
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