Cisco Stocks Slumps to Bear Market: Can Investors Expect a Rebound?

Cisco Systems has seen its stock value drop to a bear market level, down by around 20% from its highest point this year. The company's revenue and profits have continued to soar, driven in part by strong demand for its AI infrastructure solutions. In the last quarter, Cisco reported an 18% increase in revenue to $17.3 billion, with AI infrastructure orders reaching $4 billion and annual growth of $9.3 billion.

The management has boosted forward guidance, predicting a revenue surge to between $18 billion and $18.2 billion this quarter. Analysts are bullish on the stock, with an average estimate of $119 - 12% above the current level. However, some analysts have expressed caution, noting that Cisco's momentum is lower than other IT companies.

The short-term outlook for the stock is bearish, with a next key target at $100. In the long term, however, the stock is expected to bounce back and retest its all-time high of $130.