Cisco Stock Dives on Earnings Amid AI Order Surge

Cisco's stock took a hit on Wednesday after its earnings report highlighted a significant surge in AI-related orders. The company needs to meet its $9 billion full-year target, which requires approximately $3.7 billion in hyperscaler AI orders for the fourth quarter.

This figure is nearly 95% higher than the estimated rate in the third quarter, posing a challenge for Cisco's leadership. Analysts are forecasting revenue of $16.83 billion and adjusted earnings at $1.17 per share, which are close to Cisco's guidance.

The market is pricing in a possible move of about 7% by Friday, indicating a trading range around $112 to $129 based on Tuesday's closing price of $120.43. With Cisco's present market capitalization, this movement would represent approximately $33 billion.