Nvidia stock could hit $2700 if it follows Cisco’s dot-com bubble path - Siegel
In 2024, Nvidia (NASDAQ:NVDA)'s relentless march continues to propel the US equity market to new peaks. Jeremy James Siegel, a finance professor at the Wharton School, suggested that Nvidia stock has the potential to double or even triple from current levels should it mirror Cisco (NASDAQ:CSCO)'s trajectory during the dot-com era.
It is no secret that Nvidia has been the single-biggest driver of the latest stock market rally.
As the AI boom took the world by storm in early 2023, NVDA, thanks to its high-end chips, started to attract unprecedented demand.
The reason for this is that generative AI services such as ChatGPT require high computational power, primarily delivered by specialized chips known as graphics processing units (GPUs). Nvidia dominates this market, holding an estimated 80% share, according to analysts.
GPUs excel in performing the particular mathematical operations required for AI workloads, offering superior efficiency in these tasks.
In comparison, the more versatile central processing units (CPUs) produced by firms such as Intel (NASDAQ:INTC) are capable of a wider array of computational duties but do so with lesser efficiency in specific AI-related processes.
Because of significant demand for its GPUs, Nvidia’s sales exploded, as highlighted in its recent earnings reports. This breakneck growth has been reflected in the chipmaker’s stock, which rocketed over 270% over the past year.
This year alone, Nvidia stock is up a whopping 82%, broadly outperforming the broader market.
As a handful of AI-related technology giants continue to send the US stock market to new record highs, some investors are drawing parallels between this bull market and the one during the so-called “dot com bubble.”
The dot
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