Cisco was mentioned :
https://www.kitco.com/news/article/2025-10-31/major-market-top-despite-record-ai-rally-strategist-warns
19 replies (most recent on top)
Cisco is the poster child for "tech bubble" because Cisco represented the irrational exuberance of the internet in the late 90s. Cisco was briefly the "NVIDIA" of that late stage cycle and was the most valuable company in the entire world... briefly. On March 27, 2000, Cisco's market cap was around $570 billion.
dropped 89%
here's the thing. March 2000 was the peak of the DotCom bubble and marked the beginning of a brutal bear market that lasted 2 years. The NASDAQ-100 dropped to 78% from its peak in October 2002.
was the internet a good thing? Was fiber optics and networking good technologies? did Cisco sell a valuable product? yes to all.
two things can be true at the same time. AI can be valuable AND AI can be in a massive economic bubble.
cheers!
AI will take years to train. Most people doing mid level work were informed what to deliver...not how to get it done. Many times people who already know what to do are hired from competitors. Or, they were left to relearn old tasks on their own, over & over again re-solving the same problem. Corporate America hasn't trained mid level workers for decades. It's gonna be a long transition to replace most mid level workers for this reason.
@c6 AI is the new TCP/IP from Y2K
Irrational exuberance yet again
@km We used to call this "irrational exuberance"
It played out once - it will play out again.
@c3 AI financing is a problem now …. Nvidia had to invest100B$ into OpenAI so that it buys GPU from them… that’s the only way Nvidia can artificially maintain sales…
how is other companies gone up 3000% on their stock price within last two years?
whose stock has not been going up?
Cisco stock went from 24 to 68 within last 30 years.
@kg upgraded to 88. Jump in!
Cisco will be a major casualty of the AI crash when it happens. The stock will tank to below $25 and there will be a mass LR to compensate. A huge IT spend belt-tightening will happen. My comment will get marked down but as sure as night follows day this will happen.
The stock is on fire!
First one to bubble is always attached to the name of NVIDA. This company has nothing to offer except 3rd graders scripting offerings of “ agentic AI”! This is Cisco!!
Definitely! A lot of small AI startups, about 98%, will be shutdown in 1-2 years.
There will be winners too ! NVDA, Open AI and a few of them.
Just like internet bo-m in 90s and 2000s, dotcom and cloud networking were big changes. Many will try and then fail….. half a dozen winners will last and prosper.
Cycle of bo-m and bust ! Winners will last and rest will be RIP.
Spending on AI infrastructure in just the USA alone from 2023-2025 has exceeded $1T and is accelerating.
How long will it take to generate a positive ROI on the investment already made?
AI is the perfect excuse to cut headcount. In the short term all headcount reductions increase profits. So, reduce, credit AI for the additional profit. Pump & dump the stock.
AI is just a fidget spinner.
People's interest started waning months ago, and the more it's shoved down our throats without realized value, the more we'll resist.
It's big win is offensive videos, which are very entertaining, in fairness.
The only ones left shilling for AI are the futurologists who, coincidentally, are the ones selling it.
@c6 Norte should have said Nortel, by the way.
@c3 The bubble in AI is the lack of ROI, given the billions upon billions that have been shoveled into it. One signal of this bubble beginning to pop is incestuous transactions such as the Oracle/Nvidia round tripping deal. We’ll see how this plays out in the long run, but its trajectory echoes past events which in hindsight turned out to be scams (Norte, anyone?). History rarely repeats exactly, but patterns emerge which can repeat themselves over time.
The idea there is an "AI Bubble" is a fallacy. What would cause this bubble exactly? The fact people are adopting it? That's insufficient. The cost of usage of AI is actually decreasing. At this time, there's nothing to indicate the potential for a bubble. In money is poured into AI and the interest rates don't improve in the coming months, there may be a "call on the profitability," but we're a ways out for that.
To be entirely reasonable, this “news” is posted on Kitco’s web site. Kitco sells precious metals such as gold and silver, so they’re always predicting a stock market crash.
Cisco mentioned as part of the dot-com bubble. Nothing to do with the current AI bubble because Cisco isn't part of it. At all.