Cisco Systems, Inc. (CSCO) Gains 33% After Cramer Said You Shouldn’t Chase It Over $50

We recently published Jim Cramer’s 20 Bold AI Predictions – See How They Played Out! Cisco Systems, Inc. (NASDAQ:CSCO) is one of the stocks Jim Cramer recently discussed.

Cisco Systems, Inc. (NASDAQ:CSCO) caters to the needs of the AI industry by providing networking hardware that is used by data centers. Since Cramer’s remarks, the shares have gained 32.9% in what has mostly been smooth sailing except for a major 14% dip in April. Cisco Systems, Inc. (NASDAQ:CSCO)’s shares fell amidst a broader drop in networking stocks, which also saw peer firm Netgear’s shares fall by 19.8%. More recently, the shares fell by 7% after HSBC downgraded the stock. Here is what Cramer said about Cisco Systems, Inc. (NASDAQ:CSCO) in August 2024:

“I thought it was a very good quarter, but it seems that there wasn’t much follow-through afterward. To me, it feels like you shouldn’t chase it here over $50. However, I do like what they’re doing, especially with Splunk, and Chuck Robbins, the CEO, bought Splunk at what appears to be a good price. Things are looking better, inventory is clean, but I wouldn’t recommend buying aggressively over $50. That approach doesn’t work for me.”

Copyright: fotomaximum / 123RF Stock Photo

Cramer has become more upbeat about Cisco Systems, Inc. (NASDAQ:CSCO) recently. Here are his latest thoughts:

“People just think that it’s the same old Cisco. Like they didn’t buy Splunk. Splunk gave them visibility, it gave them some really, really good cyber defense works. But it gave them contacts. And Splunk was everywhere. And I don’t think people realize how embedded Splunk was. Now you’ve got a company that could have an Oracle-like revaluation. And the Oracle-like revaluation is stunning.”

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