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BofA Stays Constructive on Cisco (CSCO) with Price Target Raised to $85

Cisco Systems Inc. (NASDAQ:CSCO) is one of the best data center stocks to buy now. On August 14, BofA analyst Tal Liani raised his price target on Cisco Systems Inc. (NASDAQ:CSCO) to $85 from $76 while maintaining a Buy rating. The analyst believes that Cisco’s Q4 results and FY 2026 guidance were modestly better than expected, though without any big surprises.

Liani pointed to the company’s refreshed portfolio, an infrastructure upgrade cycle driven by AI and data growth, and consistent operational execution as the key drivers of the long-term story. Following the earnings release, BofA adjusted its growth forecasts slightly higher, reinforcing its constructive view.

Katherine Welles / Shutterstock.com

However, not all analysts share the same optimism. On the same day, HSBC’s Stephen Bersey downgraded Cisco Systems Inc. (NASDAQ:CSCO) to Hold from Buy, with a $69 price target. He argued that the company’s 2026 revenue outlook and slowing growth in remaining performance obligations point to fading benefits from customer restocking. While orders tied to AI infrastructure remain strong, Bersey believes broader demand softness is weighing on results, leaving the stock fairly valued at current levels.

Cisco Systems Inc. (NASDAQ:CSCO) designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. The company’s offerings include routers, switches, cybersecurity solutions, and collaboration tools, serving a wide range of industries and customers globally.

While we acknowledge the potential of CSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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