Cisco Systems (CSCO) faces a selloff after posting record revenue in Q2 and surpassing earnings estimates. The drop is attributed to in-line guidance and a slight gross margin decline, pushing the stock below its 50-day MA. Despite this, experts like Ray Wang recommend buying the dip due to potential in AI infrastructure. Cisco ended Q2 with $2.1 billion in AI infrastructure orders. They also introduced the Silicon One G300 chip, aiming to improve network efficiency. The stock has a forward P/E of 26x and a 2.17% dividend yield, making it an attractive AI beneficiary. Analysts maintain a “Moderate Buy” rating with a $86 target price, suggesting a 14% upside.

Read more at Yahoo Finance: Cisco Stock Plunged Below Its 50-Day Moving Average. Should You Buy the Dip?