Cisco shares slip as tech weakness offsets AI push

Cisco Systems, Inc. (NASDAQ: CSCO ) shares traded lower Friday as broad weakness across the technology sector overshadowed bullish post-earnings commentary and the networking giant’s growing artificial intelligence infrastructure push.

Technology was the weakest S&P 500 sector, falling 0.71%, even as the broader index edged 0.02% higher.

The Nasdaq slipped 0.27%, while the Dow gained 0.11%.

Cisco’s decline follows a strong 12-month run, suggesting near-term cooling as investors rotated into stronger areas of the market.

Communication Services gained 1.06% after a really strong stretch for the sector. • Cisco Systems stock is facing resistance.

Why is CSCO stock trading lower? Cramer Stays Bullish After Cisco’s Earnings Beat On CNBC’s "Mad Money Lightning Round," Jim Cramer reiterated his bullish view on Cisco, saying the company had "a really good quarter" and that management’s guidance was "very conservative." Earlier this month, Cisco reported fiscal fourth-quarter 2026 results that topped expectations.

The company guided fiscal 2027 revenue to $72.2 billion-$73.4 billion, above the $68.69 billion estimate.

Adjusted EPS guidance of $5.05-$5.11 also came in above the $4.80 estimate.

Cisco Deepens AI Infrastructure Push Cisco is also expanding its AI infrastructure strategy, with integrated Super Micro Computer, Inc. (NASDAQ: SMCI ) solutions for its Secure AI Factory expected to be offered in October 2026.

The company is targeting increasingly dense GPU systems, including Nvidia’s Vera Rubin NVL72 and HGX Rubin NVL8 platforms, while bringing rack-to-fabric liquid cooling into its infrastructure offering.

Cisco has underscored the growing importance of thermal and power constraints, stating, "Power and cooling dictate where infrastructure can be built," as AI data centers make a shift toward liquid cooling.

Read Also: AI Was Supposed to Push Everything to the Cloud: Cisco Sees the Opposite CSCO Technicals Signal Near-Term Consolidation Cisco remains in a longer-term uptrend, gaining 59.33% over the past 12 months and trading well above its 200-day simple moving average of $93.91.

Near-term momentum has softened, however.

The stock sits about 4.1% below both its 20-day SMA of $115.28 and 50-day SMA of $115.37.

That setup — below the short-term moving averages but above the longer-term trend — points to potential consolidation unless buyers reclaim the 20-day and 50-day levels.

Momentum indicators are also cautious.

MACD sits below its signal line, and the histogram is negative, signaling fading upside momentum.

Key Resistance: $121.50 — Nearby level where rebounds could face selling pressure.

Key Support: $109 — Close to the 100-day SMA of $109.84.

A break below that area could shift attention toward lower trend support.

Edge Flags Momentum, Quality Strength The Edge scorecard shows Cisco’s strongest characteristics remain momentum and quality: Momentum: 89.06/100 — Cisco retains a strong longer-term trend despite recent consolidation.

Quality: 85.94/100 — The score points to a relatively strong fundamental profile.

Value: 16/100 — The weaker score suggests valuation remains a potential headwind.

Growth: 10.95/100 — The low reading could matter if investors increasingly prioritize faster-growing technology names.

Cisco’s Edge profile therefore remains heavily supported by momentum and quality, while valuation and growth scores present potential constraints.

CSCO Stock Price Activity: Cisco Systems shares were down 1.81% at $110.12 at the time of publication on Friday, according to Pro data.

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