Before Nvidia, there was Cisco Systems.
On Feb. 16, 1990, Cisco Systems (CSCO 0.56%) went public at $18 per share. The then-$224 million company, whose software enabled computer networks to link up over greater distances, was created by two computer support staffers at Stanford University who had been tasked with helping to expand the computer network across campus. Realizing the commercial potential of the “network extension cord” that they had created, they quit their jobs to found Cisco in 1984.
The company’s routers and switches were in such high demand that Cisco became known as “the backbone of the Internet,” playing a role in the dot-com boom that isn’t unlike what semiconductor firm Nvidia has meant to the global AI revolution these days.
Today’s Change
(-0.56%) $-0.49
Current Price
$86.29
Key Data Points
Market Cap
$343B
Day’s Range
$86.13 – $88.19
52wk Range
$52.11 – $88.19
Volume
32M
Avg Vol
22M
Gross Margin
63.92%
Dividend Yield
1.89%
By 1993, Cisco had soared so rapidly that a New York Times article detailed its “stunning rise” that “puts it in the Big Leagues.” At the time, shares had already risen 1,850%, adjusting for stock splits.
But Cisco’s rise wasn’t over. As enthusiasm around the internet grew by orders of magnitude, Cisco shares continued soaring. As you can see below, by its peak in early March 2000, total returns for “the backbone of the Internet” were just over 100,600%.
But the infamous dot-com bubble meltdown was around the corner. Starting in March 2000, Cisco shares tumbled by over 70% in a years-long slide. It wouldn’t be until December 2025 that the share price finally surpassed its March 2000 peak.
So, how much would $1,000 invested in the IPO be worth now?
At $18 per share, $1,000 would have bought 55.55 shares. After nine stock splits, those initial shares would have grown to 16,000.
Image source: Getty Images.
At Friday’s close of $84.82 per share, those 16,000 shares would now be worth $1,357,120.
Cisco began paying a dividend in 2011, so there’s also income to consider. The company’s quarterly payouts, which have grown every year since 2012, now total $1.64 annually per share, so the initial $1,000 position would be generating $26,240 per year.
