Cisco Systems briefly became the world’s most valuable company during the dot-com boom in March 2000.
Cisco’s share price rose so sharply during the late-1990s technology boom that its market capitalization briefly exceeded Microsoft’s in March 2000. The achievement reflected investors’ belief that Cisco’s routers and switches would become essential infrastructure for the rapidly expanding internet.
Cisco did not make the consumer websites associated with the dot-com era. Instead, it supplied much of the networking equipment that connected businesses, data centers, and internet service providers. Its growth through acquisitions also helped it expand across networking technologies.
The ranking lasted only briefly because technology shares fell sharply after the dot-com bubble peaked. Cisco’s market value later declined substantially, illustrating why a market-capitalization ranking can change quickly even when a company remains commercially important. Microsoft soon reclaimed the top position.