Cisco stock has dropped 11% in a month due to market conditions, but AI push and security are strong.

From Nasdaq: 2025-04-22 15:00:00

Cisco Systems (CSCO) shares have dropped 10.8% in the past month, outperforming the industry and sector declines. Factors include a challenging macroeconomic background and trade war threats. Despite this, Cisco’s aggressive AI push and security dominance boost prospects, with over $700 million in AI infrastructure orders already. Orders for AI-driven systems are growing significantly.

Cisco shares have outperformed peers like NETGEAR (NTGR) and Extreme Networks (EXTR) in the past month. Cisco’s expanded partnership with NVIDIA and focus on AI and security contribute to its strong position in the market. The company’s security business is thriving, with more than 1,000 new customers for its secure access solutions.

For fiscal 2025, Cisco expects revenues of $56-$56.5 billion and non-GAAP earnings of $3.68-$3.74 per share. Analysts estimate a revenue growth of 4.86% and a slight decline in earnings for 2025. Cisco has beaten earnings estimates in the past four quarters, with an average surprise of 4.07%.

Cisco stock is trading at a premium, with a Value Score suggesting stretched valuation. Despite this, Cisco’s strong portfolio and innovative initiatives make it well-positioned for growth. The company’s AI push and security offerings justify its premium valuation. With a Zacks Rank #2 (Buy), Cisco stock presents a buying opportunity for investors.



Read more at Nasdaq: Cisco Down 11% in a Month: Should You Buy the Stock on the Dip?