Cisco (CSCO) Gets Major Price Target Increase from HSBC

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 10 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026.

Cisco (CSCO) Gets Major Price Target Increase from HSBC

On May 15, HSBC Holdings plc upgraded Cisco Systems, Inc. (NASDAQ:CSCO) to Buy from Hold. It sharply raised its price target on the stock to $137 from $77. The firm said Cisco delivered a “modest” beat in fiscal Q3, though growing AI demand has started to shift the conversation around the company’s long-term growth outlook. Management now expects fiscal 2027 AI revenue to reach at least $6 billion, which implies roughly 50% year-over-year growth. The analyst pointed to stronger momentum in AI infrastructure and improved earnings visibility as the main reasons behind the higher rating and target price.

During the fiscal Q3 2026 earnings call, Chairman and CEO Chuck Robbins said Cisco generated record quarterly revenue of $15.8 billion, up 12% from the same period last year. Total product orders also increased 35% year-over-year. Robbins added that AI infrastructure orders from hyperscale customers reached $1.9 billion during the quarter. The strong demand environment prompted Cisco to raise its outlook for AI infrastructure orders from hyperscalers to around $9 billion for fiscal 2026. Robbins also said the company expects to recognize nearly $4 billion in AI infrastructure revenue from hyperscaler customers during the fiscal year.

He further noted that Cisco introduced a restructuring plan designed to shift resources toward faster-growing areas such as silicon, optics, security, and AI. The goal is to better position the company for emerging opportunities across the technology market. Executive Vice President and CFO Mark Patterson said quarterly revenue reached a record $15.8 billion, while non-GAAP earnings per share came in at $1.06.

Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells technologies that power the Internet. The company continues integrating its product portfolio across networking, security, collaboration, applications, and cloud services.

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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