Back in the late ’90s, I was a wide-eyed rookie in the stock market game, watching colleagues chase the dotcom frenzy with names like Cisco and Dell. Those were the days of sky-high valuations and dreams of endless tech growth. Fast forward to today, and it feels like a reunion tour for these old-school tech giants. The AI boom has breathed new life into companies once dubbed “boxmakers,” and I can’t help but wonder: are we seeing a genuine comeback, or is this just nostalgia dressed up in modern tech? Let’s dive into why Cisco, Dell, and HPE are stealing the spotlight again and how you can trade these resurgent names.
The AI Revolution Resurrects Old Tech
The tech world moves fast, doesn’t it? One minute, companies like Cisco, Dell, and HPE were relics of the dotcom era, left for dead after the bubble burst. Now, they’re back, powered by the AI datacenter buildout. This isn’t just a fleeting trend—it’s a structural shift. Cloud providers are snapping up millions of servers, routers, and networking gear to fuel the AI revolution. These aren’t the clunky gray boxes of the ’90s; they’re cutting-edge systems designed for the demands of generative AI and machine learning. So, why are these old names suddenly hot again?
The AI era demands infrastructure, and companies like Cisco, Dell, and HPE are stepping up to deliver the backbone of tomorrow’s tech.
– Industry analyst
The answer lies in their expertise. These companies have spent decades perfecting the art of building reliable infrastructure. Whether it’s Cisco’s networking dominance, Dell’s server solutions, or HPE’s modular data centers, they’re proving they’ve still got game. In my experience, markets love a redemption story, and these stocks are writing a compelling one. Let’s break down each company’s role in this AI-driven surge and how you can approach trading them.
Cisco: The Networking King Reclaims Its Crown
Cisco Systems is like that friend who never left the party, even when everyone thought they’d faded away. Back in 2000, its stock hit dizzying heights, trading at a jaw-dropping 250 times earnings. Today, it’s a different story. Cisco’s hovering near $70 per share, but with a much saner price-to-earnings ratio of around 25. That’s a far cry from the dotcom mania, and it tells me this rally has legs.
Why the comeback? Cisco’s not just pushing routers anymore. Its software and cybersecurity divisions are growing, and its networking gear is the backbone of AI-heavy data centers. The company’s AI-driven management software ensures data moves securely and efficiently—critical for cloud providers scaling up. Over the past year, Cisco’s stock is up 28%, and it’s knocking on the door of its all-time high from March 2000. Can it break through?
- Key Strength: Cisco’s diversified portfolio, blending hardware with software and cybersecurity.
- Trading Tip: Watch the $60 support level, a breakaway gap from May’s earnings rally.
- Next Catalyst: Earnings on November 12 could spark another move if results surprise.
From a technical standpoint, Cisco’s chart looks promising but a bit messy. It’s been consolidating in a tight range since August, which could signal a breakout is brewing. I’d consider accumulating shares here, but only with a stop-loss around $60 to manage risk. If it dips below, something’s off, and I’d rather sit it out. What’s exciting is that Cisco’s not riding the same hype train as 2000—it’s a more mature, diversified business now.
Dell: Servers Powering the AI Future
Dell Technologies is another name that’s clawed its way back into relevance. Remember when Dell was taken private in 2013 after years of struggle? It’s a different beast now. Dell’s servers, storage, and modular data center solutions are in high demand as cloud giants like Amazon and Microsoft build out their AI infrastructure. The stock exploded to a new high in May 2024 but has since been stuck in a choppy consolidation phase.
Here’s the deal: Dell’s chart isn’t inspiring confidence just yet. It’s failed twice to break the $140s, and the 50-day moving average keeps rejecting it. That tells me the bulls aren’t fully committed. Still, the fundamentals are solid—Dell’s up 12% over the past year, and its role in AI data centers is undeniable. I’d wait for a stronger signal, like a breakout above $145 with a relative strength index (RSI) above 60, before jumping in.
Dell’s modular solutions are simplifying the complex world of AI data center deployment.
– Tech industry observer
Patience is key with Dell. The stock’s potential is huge, but it needs to show more conviction. If it can clear that $145 hurdle, it could be off to the races. For now, I’d keep it on the watchlist and focus on names with clearer momentum.
HPE: The Dark Horse of AI Infrastructure
HPE, the enterprise arm spun off from HP in 2015, is the sleeper hit of this trio. Its focus on modular data centers, servers, and IT consulting has positioned it perfectly for the AI boom. Unlike Cisco and Dell, HPE’s chart is already showing a breakout above its January highs, and it’s now retesting that level. This makes it the most technically appealing of the group.
HPE’s stock is up 27% over the past year, fueled by increased capital expenditure from tech giants. Its prefabricated data center architectures, like PODs, are a game-changer for rapid deployment and energy efficiency. I’ve always been a fan of companies that solve real problems, and HPE’s doing just that. The question is, how do you trade it?
- Risk Management: Set a stop-loss at $20, the top of the June breakaway gap.
- Short-Term Traders: Use the $22 50-day moving average as a tighter leash.
- Upside Potential: A sustained move above $25 could signal a longer-term uptrend.
HPE’s chart screams opportunity, but I wouldn’t get too cocky. The stock’s history is choppy, and we haven’t seen a long enough uptrend to declare the volatility over. A 10% risk on this trade feels right—tight enough to protect your capital but loose enough to ride the AI wave.
Why the AI Boom Is Different This Time
Let’s take a step back. The dotcom bubble was fueled by hype—valuations soared on promises of a digital future that took years to materialize. Today’s AI boom feels more grounded. Companies like Cisco, Dell, and HPE aren’t just riding a trend; they’re providing the critical infrastructure for a technology that’s already transforming industries. From generative AI to autonomous systems, the demand for data centers isn’t slowing down anytime soon.
| Company | AI Role | 1-Year Gain |
| Cisco | Networking Gear, Software | 28% |
| Dell | Servers, Storage | 12% |
| HPE | Modular Data Centers | 27% |
This table sums it up nicely: these companies are back because they’re essential. But here’s the catch—trading them isn’t a slam dunk. The AI boom is real, but so is the volatility. You’ve got to approach these stocks with a clear plan, balancing the hype with solid risk management.
Trading Strategies for the AI Comeback
So, how do you play this? First, let’s talk mindset. The AI boom is exciting, but it’s not 1999. Don’t chase these stocks like they’re going to triple overnight. Instead, focus on technical signals and fundamentals. Here’s a quick game plan for each stock:
- Cisco: Accumulate near $60, with a stop-loss at $58 to limit downside. Watch for a breakout above $70 post-earnings.
- Dell: Hold off until it clears $145 with strong RSI. The chart’s too sloppy for now—patience pays.
- HPE: Buy on dips to $20, with a tight stop at $19.50 for traders or $18 for long-term investors.
One thing I’ve learned over the years: markets reward discipline. These stocks are riding a powerful trend, but they’re not immune to pullbacks. Keep your position sizes reasonable, and don’t bet the farm on any single name. The AI boom is a marathon, not a sprint.
The Bigger Picture: Why Old Tech Matters
Perhaps the most fascinating part of this story is what it says about innovation. The tech world loves its shiny new toys—think Nvidia or Arista—but sometimes, the old guard steals the show. Cisco, Dell, and HPE aren’t just relics; they’re foundational players in the AI ecosystem. Their decades of experience give them an edge in delivering the infrastructure that powers the future.
In tech, the past often informs the future. Companies that adapt survive, and these giants are proving it.
– Market strategist
Looking ahead, the AI datacenter buildout shows no signs of slowing. Cloud spending is projected to grow at a 20% compound annual rate through 2030, and these companies are positioned to capture a chunk of that. But as an investor, you’ve got to stay sharp. Are these stocks overbought, or is this just the beginning? My gut says we’re in the early innings, but only time—and the charts—will tell.
Final Thoughts: Play Smart, Win Big
The resurgence of Cisco, Dell, and HPE is a reminder that markets are full of surprises. Who would’ve thought these dotcom dinosaurs would be leading the AI charge? Yet here we are, watching them climb the charts like it’s 1999—but with better valuations and real fundamentals. For traders, this is a golden opportunity, but only if you play it smart.
My advice? Stick to the technicals, manage your risk, and don’t get swept up in the hype. Whether it’s Cisco’s steady climb, Dell’s choppy potential, or HPE’s breakout momentum, each offers a unique way to ride the AI wave. Just remember: in the stock market, patience and discipline are your best friends. So, what’s your next move?
AI Trading Checklist: 1. Confirm technical signals (RSI, moving averages). 2. Set clear stop-loss levels. 3. Monitor earnings for catalysts. 4. Stay disciplined—no chasing!
With the AI boom in full swing, these old tech names are proving they’ve still got plenty of fight left. Keep an eye on the charts, stay nimble, and you might just catch the next big move.
