Economist Warns Nvidia Could Repeat Cisco's Fate Amid AI Bubble Concerns on June 5

According to TS Lombard economist Dario Perkins, Nvidia could repeat Cisco's fate if its earnings growth fails to keep pace with market expectations, on June 5. Perkins noted that despite Cisco's prominence during the late 1990s internet boom, the company's actual profitability took far longer to justify its inflated stock price, even though the internet ultimately transformed the global economy.

Perkins warned that strong profitability and strategic importance alone are insufficient if growth cannot meet investor expectations. The comparison underscores concerns about whether current AI-driven valuations can be sustained by actual earnings expansion.