Truist Raises Cisco Price Target Amid AI Demand Surge

Cisco Systems' stock price has been boosted by several analyst upgrades and positive earnings reports. In a research note, Truist Financial increased its price target for Cisco Systems from $125 to $140, indicating a potential upside of 23.98% from the company's current price. This upgrade comes after Cisco reported strong fourth-quarter results, with revenue rising 18% to about $17.3 billion and non-GAAP EPS of $1.22 surpassing analyst estimates.

Analysts at Barclays, KeyCorp, Bank of America, Rosenblatt Securities, and Evercore have also raised their price targets for Cisco Systems in recent weeks, with ratings ranging from 'equal weight' to 'buy' or 'overweight.' The company's network equipment business has seen significant growth, driven by accelerating demand for AI networking infrastructure. In fact, Cisco reported $9.3 billion in fiscal 2026 AI infrastructure orders, including $4 billion in the fourth quarter.

While some investors are concerned about potential gross-margin pressures from supplying large AI infrastructure projects, many analysts remain optimistic about the company's prospects. With a strong balance sheet and a history of innovation, Cisco Systems is well-positioned to capitalize on emerging trends in the tech industry.