AI is a bubble. Will Cisco ride that wave to 100?
Thoughts?
7 replies (most recent on top)
Cisco has a trailing P/E of nearly 30 at $76.32 right now. Adjusted for inflation FY2023's revenue would be over $61B, and since then Cisco added an additional $4B of revenue when they brought Splunk. It's currently under $58B. Operating margins are down significantly since the end of CY2023.
Aside of investors being punch drunk by the letters A and I what would make anyone think Cisco is worth its current price?
It will get to 100 cents by January.
Power will be the ultimate barrier to success here.
Cisco + Nvidia alliances are limited by power efficiency
The tide lifts all boats. The “tide” has nothing to do with Cisco though, Cisco is some floating flotsam whilst the AI weather is made by NVidia, Microsoft and others.
I, too, get all of my financial advice from anonymous strangers on the internet.
It doesn't matter what CSCO does, you will always make more money with less risk by just buying Qs or SPY
If Cisco ELT really wanted CSCO to fly, it would sell off SBG and let the hardware business shine without being pulled down by forever-failing software
Yes, this is likely around March timeframe next year. Then steady decline