I Survived the Dot-Com Bubble. The Lessons I Learned From That Time Are Keeping Me Out of These 2 Tech Giants, and Here's Why

The dot-com boom and subsequent crash taught me valuable lessons about investing. I now find myself wary of two major tech giants: Micron Technology (MU) and Nvidia (NVDA). These companies, once revered in the industry, have faced significant fluctuations since the bubble burst.

Micron, a leading memory chip company since 1984, reached a record high of nearly $97 per share during the dot-com boom, only to plummet to below $7 per share in 2003. Despite recent improvements, the company's stock is still below its 2000 peak. Memory stocks are notoriously volatile, and Micron's high revenue growth in recent quarters has been tempered by concerns about a potential downturn.

While the company's long-term contracts with customers may help mitigate some risks, investors should be cautious of a possible sell-off when the market shifts.

Similarly, Nvidia, the dominant player in the AI accelerator market, has experienced staggering growth. However, Nvidia's trajectory is more similar to that of Cisco during the dot-com boom. Nvidia's IPO in 1999 coincided with the invention of the GPU, and today's AI-driven market has propelled the company to unprecedented heights.

However, Nvidia's growth is not immune to the volatility of the market. The company's P/E ratio is far below Cisco's peak in 2000, but a financial crisis could disrupt Nvidia's growth story. While I believe Nvidia will remain a strong investment, I advise potential shareholders to be prepared for potential disruptions.