Cisco Methods, Inc. (NASDAQ:CSCO) is among the Buzzing AI Shares on Wall Avenue. On August 14, Piper Sandler analyst James Fish lowered the value goal on the inventory to $64.00 (from $70.00) whereas sustaining a Impartial score.
Fish famous how Cisco’s quarterly outcomes had been roughly in-line, and that FY26 information got here in under what bulls had been hoping for. That is elevating questions on “peak development x peak a number of” being already seen, with second half of 2026 information implying lower than 5%.
Inventory market information on a laptop computer display screen. Picture by Alesia Kozik on Pexels
Nonetheless, the agency believes that the narrative for Cisco stays unscathed owing to synthetic intelligence.
“Nonetheless, the narrative right here stays unscathed, as Cisco will see the ~$1B AI orders in F2H25 move into FY26 income, additional AI-infrastructure spend (together with throughout customer-bases), campus refresh, datacenter refresh & modernization, rising Enterprise & Neoclouds traction, and Splunk cross-sell and cost-synergies. FY26 information seems about how we anticipated and lifelike, notably for an incoming CFO. The talk from right here will likely be sustainability, and whereas we stay optimistic across the narrative throughout a number of fronts, even an upside numbers situation is already embedded within the inventory at these ranges. Reit. Impartial, PT to $70.”
Whereas we acknowledge the potential of CSCO as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back danger. When you’re searching for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
READ NEXT: 10 AI Shares In The Highlight For Buyers and 10 AI Shares Making Headlines This Week
Disclosure: None.