Stocks
Cisco Shares Gap Down Amid AI Infrastructure Concerns
Cisco Systems (NASDAQ:CSCO) shares gapped down prior to trading on Thursday, opening at $113.93 after closing at $123.88.
The stock's gap-down was driven by investor concerns over potential profitability pressure from supplying large AI infrastructure projects.
Despite this, Cisco reported strong earnings and guidance for the fiscal fourth quarter, exceeding analyst estimates with revenue of $17.3 billion and non-GAAP EPS of $1.22.
The company also expects approximately $7.5 billion of AI infrastructure revenue in fiscal 2027 and has seen a 40% year-over-year increase in networking product orders.