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Cisco (CSCO) Price Target Lowered to $64 Despite Strong AI Narrative

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the Buzzing AI Stocks on Wall Street.  On August 14, Piper Sandler analyst James Fish lowered the price target on the stock to $64.00 (from $70.00) while maintaining a Neutral rating.

Fish noted how Cisco’s quarterly results were roughly in-line, and that FY26 guide came in below what bulls were hoping for. This is raising questions about “peak growth x peak multiple” being already seen, with second half of 2026 guide implying less than 5%.

Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels

However, the firm believes that the narrative for Cisco remains unscathed owing to artificial intelligence.

“However, the narrative here remains unscathed, as Cisco will see the ~$1B AI orders in F2H25 flow into FY26 revenue, further AI-infrastructure spend (including across customer-bases), campus refresh, datacenter refresh & modernization, growing Enterprise & Neoclouds traction, and Splunk cross-sell and cost-synergies. FY26 guide looks about how we anticipated and realistic, particularly for an incoming CFO. The debate from here will be sustainability, and while we remain optimistic around the narrative across multiple fronts, even an upside numbers scenario is already embedded in the stock at these levels. Reit. Neutral, PT to $70.”

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.

READ NEXT: 10 AI Stocks In The Spotlight For Investors and 10 AI Stocks Making Headlines This Week

Disclosure: None.

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

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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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