Cisco Peaked in Q1 - Q2 2000, similar to Nvidia, it had a 55 PE. For the growth they were showing, ppl also felt that the PE was too low. Similar to what I expect with NVDA earnings will continue to grow but not as fast, and because it is a Semiconductor stock, after the peak multiples compress.

Nobody doubts earnings for Nvidia will grow YOY, but not at the same rate. Therefore, without a reacceleration in top line and earnings growth, multiple compression becomes more and more of the reality. Similar to Nvidia, when Cisco peaked in q1-q2 of 2000, their PE was 55. Given the growth they were showing in the years leading up to this, people also felt that this was too low of a PE ratio. The problem is, semiconductor stocks are extremely cyclical (unlike the Mag 7 who have ARR). Cisco hit a massive airpocket in the latter half of 2000, not because earnings didn't continue to grow, but because the growth rate YOY started to slow and the stock price naturally then comes under ever-increasing multiple compression.