Steve Eisman Says AI Boom Is ‘For Real’ as Cisco Growth Hits 18%: Here’s What Could Derail It
Key takeaways
- Cisco’s AI growth is real, but a looming price war could threaten its sustainability.
- Cisco revenue 18% jump to $17.3 billion
- $4 billion hyperscaler AI orders this quarter
- $9.3 billion fiscal 2026 total AI orders
What happened
Steve Eisman praised the real growth of AI, citing Cisco’s 18% revenue jump to $17.3 billion and $4 billion of hyperscaler AI orders, while warning that a price war with cheaper Chinese and open‑weight models could erode the boom.
Why it matters
Cisco’s AI revenue surge signals a shift in networking demand, but the sector may be vulnerable if lower‑priced models cut margins and drive higher token usage. The risk of a price war could compress earnings and alter competitive dynamics.
Short-term and longer-term
Short-term. Cisco’s AI revenue jump to $17.3 billion (+18%) is a short‑term catalyst that could lift the stock.
Longer-term. For investors, the key is whether Cisco’s AI business can sustain growth beyond the current 18% surge.