Cisco shares fall after the company issues a forecast for AI-related data center sales that investors view as less than expected. Cisco projects $7.5 billion in AI data center sales for the current fiscal year, prompting a drop in its stock.
Cisco frames the outlook as prudent and says it reflects a quality approach to the market, according to CEO Chuck Robbins. NDTV reports that Cisco also expects AI to contribute a limited portion of its broader revenue picture, with AI sales making up about 10% of total projected revenue of roughly $72.2 billion to $73.4 billion in fiscal 2027.
While both outlets point to investor disappointment, they focus on different aspects of the guidance: Bloomberg emphasizes the near-term AI data center sales figure of $7.5 billion, while NDTV highlights AI’s share of overall revenue by fiscal 2027. Together, the coverage suggests the core issue is the scale of expected AI revenues relative to investor expectations, despite the company’s confidence in its methodology and positioning.
