Michael Burry says Nvidia’s rapid rise shows striking similarities to Cisco’s trajectory during the dot-com boom, warning that the current AI-driven rally may be repeating a historical bubble pattern. According to Burry, Nvidia is seen as the defining company of this era just as Cisco was in 2000, when investor optimism pushed its valuation to unprecedented highs.
Burry highlights that after reaching its peak, Cisco lost more than 80% of its value between 2000 and 2002, despite strong fundamentals and dominant market share. He argues that narratives around transformative technologies can mask unsustainable expectations, and that Nvidia’s valuation now reflects comparable exuberance.
His comments arrive amid broader debate over whether AI-related equities are overheated. While Nvidia continues to post record revenue and demand for its processors remains strong, Burry says the market is overlooking cyclical risk and the possibility of a sharp correction similar to past tech bubbles.
