What was the downfall of Cisco?

Written by Editorial Team | Last Updated: August 2026

Cisco Systems experienced a dramatic market correction and valuation downfall following the catastrophic bursting of the dot-com bubble in March 2001. As the dominant provider of networking hardware and routers powering the internet expansion, Cisco's stock had skyrocketed to unprecedented heights fueled by speculative customer orders and double-booking. When technology spending suddenly collapsed, corporate customers cancelled massive orders, leaving Cisco with enormous excess inventory write-downs. While the company successfully survived the crash, restructured its operations, and remained a foundational tech enterprise, its share price took over a decade to return to its previous peak valuation.

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