Why Is Cisco Stock Sinking Even After Upbeat Q2 Results?

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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.

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