$NVDA Jeremy Siegel says…
Nvidia could be worth $6 trillion if it follows Cisco's dot-com trajectory, says Jeremy Siegel
Theron Mohamed
Mar 13, 2024, 8:33 AM EDT
Nvidia stock could triple if it follows Cisco's path during the dot-com bubble, Jeremy Siegel said.
The chipmaker could be worth more than $6 trillion and blow away Apple and Microsoft, he said.
The Wharton finance professor said speculation is less extreme now than during the internet boom.
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Nvidia could triple in value to become the world's first $6 trillion-plus company if it follows Cisco's trajectory during the dot-com bubble, Jeremy Siegel said.
The microchip maker's stock has surged by more than 500% since the start of 2023, including a near-90% jump in the past 10 weeks alone.
It's now worth $2.3 trillion, propelling it past Amazon and Alphabet and leaving only Microsoft ($3.1 trillion) and Apple ($2.7 trillion) ahead.
"The big question for Nvidia, and tech more broadly, is: are we in a 1996-97 hype cycle where these stocks are still going to get even crazier as we did 24 years ago during the internet mania?" Siegel wrote in his WisdomTree commentary this week.
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The retired Wharton finance professor and author of "Stocks for the Long Run" gave the example of Cisco. The networking giant's stock skyrocketed 1,000-fold in the decade between its IPO and its dot-com peak in March 2000, making it briefly the world's most valuable company with a market cap of $569 billion.
"There could be 2-3x more upside in Nvidia if it follows Cisco's valuation path to its peak," Siegel said. "To be clear — this is not my prediction of what will happen — just to note as to what is possible in a mega bubble."
Siegel's comment suggests that if Nvidia is indeed the new Cisco, its stock could rocket above $2,500, valuing the company as high as $6.4 trillion. A market cap of that size would make it worth roughly two Microsofts, 12 Teslas, or 42 Nikes.