Within the late Nineteen Nineties, everybody needed a bit of the brand new know-how referred to as the web.
Cash flooded into dot-com startups with little greater than a marketing strategy and a catchy title.
And the Nasdaq quadrupled in 5 years.
Supply: tradingview.com
However right here’s the factor most individuals overlook…
The most important winner of the late 90s wasn’t a dot-com in any respect.
It was Cisco, an organization that didn’t run an internet site or promote any advertisements. As a substitute, it bought the routers and switches that saved the online on-line.
From 1990 to 2000, Cisco’s inventory rocketed greater than 75,000%.
That means, a $10,000 stake become greater than $7 million.

Supply: tradingview.com
In the meantime, the S&P 500 gained simply 280% in the identical stretch.
What’s the lesson you may study from this?
That the most important fortunes usually don’t come from chasing the plain names.
It’s a easy fact, however it’s crucially vital to grasp proper now. As a result of in 2025 we’re watching an analogous setup play out once more…
The AI Echo
The parallels between as we speak and 1999 are hanging.
In 1999, tech shares made up practically 30% of the S&P 500’s market cap. At this time, they account for greater than 34%.
On the peak of the dot-com bubble, the common tech inventory traded at over 70 occasions earnings.
At this time, the sector averages nearer to 30 occasions earnings. Which remains to be costly, however it’s not practically as outlandish.
As a result of not like the dot-com growth, when valuations had been pinned to web page views, as we speak’s multiples are tied to corporations with actual revenues and big demand for his or her merchandise.
As talked about final week, AI is beginning to have an actual impact on productiveness progress throughout the financial system.
It’s additionally the most important driver of as we speak’s inventory market.
And the poster little one of the AI growth is Nvidia (Nasdaq: NVDA).
Previously seven years, Nvidia has surged greater than 3,000%, pushing its market cap previous $4 trillion.

Supply: tradingview.com
Final month, Nvidia’s weighting within the S&P 500 reached over 8%. That’s the best for a single inventory since record-keeping started in 1981.
Nevertheless it’s the identical type of focus we noticed on the peak of the dot-com growth, when a handful of tech names carried the complete market larger.
And this underscores the easy lesson Cisco taught us 25 years in the past.
Nvidia’s inventory worth would possibly nonetheless have extra runway, however George Gilder and I imagine it’s too large to ship the subsequent Cisco-style returns.
As a substitute, similar to throughout the dot-com period, they’ll come from the smaller corporations enabling AI’s success.
It’s the type of second that solely comes round as soon as each technology.
And George Gilder is aware of all about moments like these. In any case, he’s been monitoring them for half a century.
He confirmed Ronald Reagan his first microchip within the Oval Workplace as a result of he understood how the convergence of chips and networks would create the digital financial system.
Now he says we’re coming into what we’re calling “Convergence X.”
It’s a second similar to when the steam engine met the railroad and created America’s first related financial system…
And when the microchip met the web and launched Microsoft, Amazon and Google.
These had been moments that created generational wealth.
However as we speak, eight breakthrough applied sciences are accelerating directly.
Any one in all these might mint fortunes. However collectively, they’re feeding off one another in methods we’ve by no means seen earlier than.
That’s why we imagine this second is greater than the web growth.
And we’re not the one ones. Simply take a look at the place as we speak’s billionaires are putting their bets.
Mark Zuckerberg has dedicated $65 billion this yr to convergence infrastructure.
Larry Ellison secured a $100 billion contract tied to Challenge Stargate. His wealth jumped so quick he briefly overtook Elon Musk because the richest man on Earth.
And Jeff Bezos has liquidated billions in Amazon shares to stake out smaller convergence performs.
These people aren’t making facet bets on AI.
They’re making structural wagers on the spine of the subsequent financial system.
That’s why George and I are sharing an pressing replace from his house within the Berkshire Mountains.
As a result of the acceleration we’re seeing is going on quicker than anybody predicted…
So we’re sounding the alarm as we speak.
Right here’s My Take
Historical past doesn’t repeat, however it rhymes.
The web growth minted a technology of millionaires. However what we’re calling “Convergence X” is greater, quicker and already in movement.
This may very well be the second that flips the swap on the most important wealth switch of our lifetimes.
And simply as Cisco turned the web right into a generational wealth occasion, the businesses powering Convergence X will outline this decade’s fortunes.
The little-known performs that may make the convergence doable might see explosive strikes as soon as Wall Avenue catches on.
However the window to get positioned is closing quick.
George and I are going stay at 1PM as we speak with an pressing replace on why this “tremendous convergence” is now going into OVERDRIVE.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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