Stock Track | Cisco Soars 5.15% Intraday on AI Security Guidelines Drafting and Strong Q4 Outlook

Stock Track08-05

Cisco Systems Inc. (CSCO) shares surged 5.15% in intraday trading, reflecting a broad rally in AI-related technology stocks and mounting investor enthusiasm for the company's growing role in artificial intelligence security.

The stock gained momentum following reports that Cisco is co-drafting the SAFE framework, an AI security guideline, alongside NVIDIA and CrowdStrike. This initiative reinforces Cisco's positioning in the rapidly expanding AI security domain. The company has been steadily building its AI security portfolio, including the launch of the Antares series of security small language models and its Cloud Control Platform. Several investment banks have raised price targets on Cisco, with JPMorgan lifting its target to $145 and Bank of America to $150.

Adding to the positive sentiment, UBS published a note stating that Cisco is likely to deliver revenue and earnings per share upside in its fourth quarter. The firm cited industry checks pointing to accelerated demand for AI infrastructure, which supports strong networking revenue and product orders. UBS maintained its buy rating with a $132 price target. The broader AI software sector also rallied, with stocks like Palantir and Snap posting double-digit gains, further lifting Cisco's shares.

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