Nvidia Surge Echoes Cisco's 1990s Run: 'More Upside Before It Crashes... If It Crashes,' Top Wall Street Analyst Says
Portfolio Pulse from Piero Cingari
Wall Street analyst Ed Yardeni compares Nvidia's (NVDA) current rally to Cisco's (CSCO) 1990s run, suggesting NVDA could have more upside before a potential crash. Nvidia's stock has surged 265% since ChatGPT's release, outpacing the S&P 500 Semiconductor Index. Yardeni notes the market's expectation of interest rate cuts as inflation seems under control, which could lead to a market melt-up. However, he warns of the risk of a speculative bubble similar to the dot-com era if the Fed cuts rates prematurely.
January 29, 2024 | 4:41 pm
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POSITIVE IMPACT
Nvidia's stock has seen a significant rally, with a 265% increase since the release of ChatGPT, and may continue to rise according to analyst Ed Yardeni. However, there is a cautionary note about the potential for a speculative bubble.
The comparison to Cisco's historical run and the current performance of Nvidia's stock suggests investor optimism, which could drive the price up in the short term. However, the mention of a potential bubble introduces uncertainty, which could temper gains.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Cisco is mentioned as a historical parallel to Nvidia's current stock performance. While not directly impacting CSCO's current stock, the reference serves as a cautionary tale of past tech bubbles.
Cisco is referenced for historical context rather than current market activity. The mention may not have a direct impact on CSCO's stock price but serves as a reminder of market cycles.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20