Stocks
Huawei Trial Sinks Cisco Stock as Investors Eye AI Growth Engine
Cisco Systems CSCO slipped around 0.5% to $108.865 on Thursday as Huawei's federal criminal trial opened in Brooklyn.
Prosecutors accused Huawei of conspiring to steal trade secrets from five U.S. businesses, including source code for Cisco's router operating system.
The case involves allegations of sanctions and financial-system violations tied to Iran, with Huawei rejecting the charges as legitimate business conduct or isolated employee behavior.
Cisco is not prosecuting the case, and investors have no disclosed financial recovery to price into the shares.
The bigger earnings engine sits inside Cisco's AI pipeline, which booked $9.3 billion of fiscal 2026 AI orders, equal to about 14.7% of its $63.33 billion in annual revenue.