Cisco’s stock is declining despite better-than-expected Q2 results and a raised annual forecast, primarily due to concerns over shrinking gross margins. While the company saw strong demand for AI-focused products and lifted its AI orders outlook to over $5 billion, investors are worried about the impact of rising memory chip prices on profitability. Retail sentiment, however, remains bullish, with many expecting a rebound in the stock price.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Why Is Cisco Stock Sinking Even After Upbeat Q2 Results?
Cisco’s stock is declining despite better-than-expected Q2 results and a raised annual forecast, primarily due to concerns over shrinking gross margins. While the company saw strong demand for AI-focused products and lifted its AI orders outlook to over $5 billion, investors are worried about the impact of rising memory chip prices on profitability. Retail sentiment, however, remains bullish, with many expecting a rebound in the stock price.