Cisco Systems, Inc. (NASDAQ:CSCO) is one of the tech stocks held by Goldman Sachs, with a total holding value of almost $2.78 billion, making it to our list of the top Goldman Sachs tech stocks to buy now.
Cisco shares are trading at their all-time high as investors show positive sentiment towards the company’s notable quarterly earnings performance. The company posted adjusted earnings per share of $1.06 for the third quarter of FY2026, surpassing the expected $1.04 per share. Revenue also exceeded expectations of $15.56 billion, coming in at $15.84 billion for the quarter. This marks a 12% revenue growth from a year ago. The company’s AI infrastructure and hyperscaler orders boosted the sales, and so far in 2026, Cisco has received AI infrastructure orders worth $5.3 billion. The company expects these orders to reach $9 billion in FY2026. In this space, the company anticipates the FY2026 revenue to reach $4 billion, up from the previous projection of $3 billion.
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Cisco’s CEO, Chuck Robbins, highlighted that the company’s robust performance during Q3 demonstrates its relevance in connecting with and securing AI technology. On May 15, HSBC lifted the rating on CSCO from Hold to Buy, also raising the price target to $137 from $77. The analyst took a bullish stance and recommended HSBC as a Buy, largely due to Cisco’s growing AI orders, which are effectively redefining the firm’s growth trajectory.
Cisco’s management anticipates around $6 billion in FY2027 AI revenue, which implies a 50% year-over-year growth. On May 26, TheFly reported that BofA increased the price target on CSCO from $114 to $135, keeping a Buy rating. BofA’s target increase follows Q3 results and the company’s promising update around Acacia Communications. Acacia is focused on designing and manufacturing an entire portfolio of high-speed optical interconnect technologies that serve different applications across datacenter, metro, regional, long-haul, and undersea networks. BofA sees Acacia’s strong demand as positive, considering the underlying demand environment for Optical Networking.
Cisco Systems, Inc. (NASDAQ:CSCO) is involved in the manufacture, design, and sale of Internet Protocol-based networking products and services associated with the communications and IT industry.
While we acknowledge the risk and potential of CSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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