Cisco Stock Drops Amid Surge in AI-Related Orders
Cisco's stock took a hit on Wednesday after its earnings revealed a surge in AI-related orders, totaling $3.7 billion.
This significant increase is necessary to meet Cisco's target of $9 billion in full-year AI orders, with the company needing to reach this figure in the fourth quarter alone.
Cisco's stock dropped 1.75% to $120.43 on Tuesday, and traders are anticipating a bigger shift after earnings on Wednesday, with options pricing in an approximate 7% move by Friday, representing around $33 billion based on Cisco's market capitalization of $474.67 billion.
The company's Chief Executive Chuck Robbins stated that they experienced 'very strong, broad-based demand for our products,' but the challenge remains significant, standing at around 95% higher than the estimated third-quarter rate.