Cisco shares fell 4.5% on Friday, closing at $113.77, despite strong AI demand and an increased Wall Street price target. KeyBanc analyst Jackson Ader reiterated an “Overweight” rating and raised its Cisco target to $130 from $125. Cisco boosted its fiscal 2026 AI orders outlook to $9 billion from $5 billion, and management disclosed that AI infrastructure orders from hyperscale customers have already reached $5.3 billion this year. The company also expects AI infrastructure revenue from major cloud providers to approach $4 billion during fiscal 2026. However, investors remain concerned that Cisco’s valuation already reflects much of its AI growth potential; at Friday’s closing price, Cisco trades at approximately 26.6 times the midpoint of its fiscal 2026 non-GAAP earnings guidance of between $4.27 and $4.29 per share. The decline erased roughly $21 billion from Cisco’s market capitalization, with nearly 50.1 million shares changing hands, significantly above the average daily volume of about 28 million shares. Cisco’s projected total annual revenue guidance is between $62.8 billion and $63 billion.