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Investing.com - Evercore ISI maintained its In Line rating and $80.00 price target on Cisco (NASDAQ:CSCO) following the company’s announcement of a joint venture with AMD and HUMAIN. The stock currently trades at $78.39, near its 52-week high of $79.50, with InvestingPro analysis indicating the stock is trading above its Fair Value. Cisco has delivered impressive returns of 39.85% over the past year.
The three companies plan to establish a joint venture providing full-stack AI solutions for regional and global customers, with operations beginning in 2026 starting with an initial 100 MW AI infrastructure buildout.
In the partnership, HUMAIN will provide data center capacity, Cisco will supply critical infrastructure, and AMD will provide their Instinct MI450 Series GPUs, according to Evercore ISI.
The research firm estimates the HUMAIN joint venture could represent a $300-500 million revenue opportunity for Cisco in 2026 based on the 100 MW of capacity deployed, potentially driving more than 0.5% revenue growth and $0.02-0.04 in EPS upside.
Longer-term, HUMAIN envisions potential for up to 1 GW buildout by 2030, which could create a $3-5 billion total revenue opportunity for Cisco over a five-year period, Evercore noted.
In other recent news, Cisco has experienced several positive developments. The company reported strong fiscal first-quarter results, with product orders growing by 13% year-over-year, or 9% excluding hyperscalers. Notably, Cisco recorded $1.3 billion in artificial intelligence orders during the quarter, marking a significant 50% growth compared to the previous quarter. This performance has led several analyst firms to adjust their price targets for Cisco. UBS raised its price target to $90, maintaining a Buy rating, while Piper Sandler increased its target to $86, citing consecutive strong quarters and advancements in AI infrastructure. Rosenblatt Securities also raised its price target to $100, driven by strong demand from hyperscale customers and AI investments. Melius Research echoed this sentiment, raising their target to $100 and highlighting Cisco’s networking strength despite a decline in its security segment. William Blair reiterated its rating following Cisco’s raised guidance and positive AI outlook for the fiscal year.
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