Burton Malkiel on how the AI revolution is different from the internet bubble of 2000

AI has the promise to make enormous advances in productivity and could be as important as the Industrial Revolution.  And if Nvidia grew its earnings at the rate expected by security analysts in 2024, it would be selling at only 33 times forward earnings.  No wonder its supporters consider it a cheap stock.  Nvidia today doesn't resemble Cisco in January 2000 [which sold at a triple-digit multiple of both trailing earnings and expected results for 2000].

~ Burton G. Malkiel, "Yes, Tech Stocks Really Can Keep Going Up," Barron's, March 9, 2024

Barton Biggs thinks Cisco Systems finances 20% of its networking equipment (2000)

In a recent research note, Morgan Stanley's Barton Biggs said he's been hearing that Cisco [Systems] will give some of its customers nine-year notes on some of its equipment with no interest or repayment during the first three years.  Biggs says some people at the company have acknowledged to him that a good portion of this equipment will be obsolete in three years...  So how much of Cisco's business is financed this way?  Biggs says he thinks it's somewhere in the neighborhood of 20%.

~ Barron's, "The Trader" section, April 24, 2000