Cisco Shares Plunge 1.56% on $2.73B Volume 21st in U.S. Activity Despite Surging AI Orders

On August 14, 2025, Cisco Systems (CSCO) closed down 1.56% with a trading volume of $2.73 billion, ranking 21st in U.S. market activity. The decline followed mixed market reactions to its Q4 financial results despite exceeding earnings estimates for the fourth consecutive quarter.

Cisco reported robust demand for AI infrastructure, with $800 million in orders from large web-scale clients during the quarter. Total product orders rose 7% year-over-year, driven by enterprise deals and recurring revenue growth. The company’s AI-related orders have now surpassed $2 billion for fiscal 2025, doubling its initial target. Networking products also saw double-digit order growth, supported by strong demand for its Cat9k smart switches and industrial IoT solutions.

However, investor enthusiasm remained muted as the stock’s forward price-to-earnings ratio of 21.8x suggests a stretched valuation. Management projected $59–60 billion in revenue for fiscal 2026, implying a 5% year-over-year increase, which aligns with 2025 growth but lacks acceleration. Analysts noted that while Cisco’s fundamentals remain strong, the market may have already priced in much of its near-term upside, limiting further gains.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to present delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded during the backtest period. The approach showed steady returns but highlighted risks, particularly the 15.46% decline in mid-2023, underscoring the need for disciplined risk management in volume-driven strategies.