Cisco’s Stock Plunge and 24th-Ranked $2.72B Volume After Analyst Downgrade and AI Growth Stumbles

On August 15, 2025, Cisco (CSCO) closed at $66.16, down 4.47% with a trading volume of $2.72 billion, ranking 24th in the market. The decline followed an earnings report and analyst adjustments that weighed on investor sentiment.

HSBC analyst Stephen Bersey downgraded Cisco’s stock to “hold” from “buy,” citing underwhelming performance in its core networking segment despite recent de-stocking improvements. The firm’s tepid fiscal 2026 guidance and muted AI-related revenue growth failed to offset concerns over slowing business momentum. While Cisco reported a 8% year-over-year revenue increase to $14.7 billion and a 12% rise in non-GAAP profits, the results fell short of high expectations in the competitive AI sector.

Analysts noted that Cisco’s AI initiatives, though showing promise, remain insufficient to drive long-term growth in a market demanding aggressive innovation. The stock’s underperformance contrasted with broader tech indices, highlighting investor skepticism about its strategic direction amid macroeconomic uncertainties.

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