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UBS Raises Cisco (CSCO) Target Amid Strong AI Orders, Earnings Beat

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the most undervalued cybersecurity stocks to buy now. On August 5, UBS kept its Neutral rating on Cisco Systems, Inc. (NASDAQ:CSCO), while increasing the price target from $70 to $74. The firm’s latest price target represents a 10% upside. UBS cited that increasing campus and data center demand could lead to an earnings beat in Q4.

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Cisco Systems, Inc. (NASDAQ:CSCO) reported Q4 FY 2025 (ended July 30) revenue of $14.67 billion, up 8% year-over-year, with full-year revenue reaching $56.65 billion, a 5.3% growth from FY 2024. The company’s The networking giant said that its AI infrastructure orders from webscale customers exceeded $2 billion for the fiscal year 2025, twice as much as it had projected. CEO Chuck Robbins cited innovation and execution as key drivers, positioning Cisco to lead the AI era through a shift in infrastructure architecture.

Cisco posted strong Q4 margins and EPS (non-GAAP) above guidance, with EPS at $0.99 per share, beating analysts’ estimates of $0.977 per share. For the whole year, EPS rose to $3.81, a paltry 2.1% growth. CFO Mark Patterson emphasized strategic investments and profitable growth ahead. For Fiscal year 2026, the company projected revenue between $59 billion and $60 billion, and that for EPS of $4.06 per share, reflecting continued momentum despite tariff impacts.

Cisco Systems, Inc. (NASDAQ:CSCO)  is a major player in cybersecurity, with offerings including a comprehensive suite of security solutions. The company is known for integrating security into its networking infrastructure and leveraging AI to enhance their security capabilities.

While we acknowledge the potential of CSCO as an investment, 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 a 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Battery Technology Stocks to Buy Right Now and 10 Best Military Tech Stocks to Buy Now

Disclosure: None.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

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.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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