Vandita Jadeja
5 min read
Quick Read
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Cisco (CSCO) trades at 20x forward earnings with a $125.51 price target, implying 17% upside and a base case of $138 by 2028.
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Arista (ANET) trades at 39x forward earnings while HPE carries a 4.8% operating margin, making Cisco’s valuation the sweet spot between both peers.
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Cisco expects AI infrastructure revenue to nearly double to $7.5 billion in FY2027, with CEO Chuck Robbins calling it the start of a “super cycle.”
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Cisco Systems (NASDAQ:CSCO) spent years as the networking giant that growth investors passed over. AI is pulling it back into the public eye.
The 24/7 Wall St. price target for Cisco is $125.51, which implies 16.87% upside from $107.39. The model is highly confident in its buy rating for the stock.
The comeback case rests on AI infrastructure revenue. Cisco expects AI infrastructure revenue to reach $7.5 billion in FY2027, up from about $4 billion in FY2026. If that ramp holds, our model’s base case reaches $138.03 by October 2028.
Cisco is one of the names gaining as hyperscalers pour money into the picks-and-shovels side of AI (we featured seven of these non-chipmaker suppliers in a free report you can grab here).
A Sharp Weekly Pullback Follows a Strong 2026 Rally
Shares fell 9.29% over the past week and are about flat over one month (+0.05%). They are still up 41.96% year to date. The stock sits about 17% below its 52-week high of $129.38 and about 57% above its low of $68.58.
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Fiscal Q4 revenue rose 17.58% to $17.25 billion, ahead of the $16.83 billion estimate. Non-GAAP EPS of $1.22 exceeded expectations of $1.17. Even so, the stock slipped after the report on margin concerns, and Piper Sandler cut its price target in September.
