Cisco Shares Hit Record High as AI Chip Rally Pushes SOX Up 70%
CSCO•Cisco shares reached a record high this week as the Philadelphia Semiconductor Index rallied approximately 70% since March 30 lows, driven by AI networking and chip demand. Wall Street strategists warn this AI-fueled surge shows “borderline mania,” drawing uncomfortable parallels to 1999 dot-com era valuations.
1. Cisco Stock Hits Record High
Cisco shares reached an all-time peak this week as the Philadelphia Semiconductor Index surged approximately 70% since the March 30 lows, reflecting strong demand for AI networking and chip solutions.
2. AI Chip Rally Fuels Sector Growth
Nvidia’s market capitalization topped $5.5 trillion, Cerebras jumped 68% in its market debut and memory maker Micron helped propel the SOX to new highs, fueling optimism across tech sectors.
3. Strategists Sound Dot-Com Warning
Multiple strategists describe the current AI-fuelled upswing as “borderline mania,” warning that such euphoria draws uncomfortable parallels to the 1999 dot-com era despite current valuations remaining below those historical peaks.
4. Macro Risks Delay Rate Cuts
Inflation is accelerating as triple-digit oil prices become entrenched, prompting investors to push expected rate cuts into 2027 and raising uncertainty for further gains in technology shares.
