Cisco shares jump as stock buying pressure builds

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Cisco surges 2.28% today to $98.73

Highlights

Cisco raised its full-year AI-related revenue outlook above $5 billion after reporting over $2.1 billion in AI infrastructure orders last quarter.
The ongoing Splunk integration is a strategic focus as Cisco monitors potential gross margin impacts from higher memory component costs.
Cisco trades with strong bullish momentum near $98.73, but overbought signals suggest any upside beyond $102.08 may be limited short term.

AI growth and Splunk integration drive earnings expectations

Cisco is preparing to report its third quarter fiscal 2026 earnings on May 13, 2026, after posting strong Q2 results with an EPS of $1.04 and revenue of $15.35 billion. AI infrastructure orders exceeded $2.1 billion in the last quarter, prompting an increase in the company's full-year AI-related outlook to over $5 billion. The integration of Splunk is in its second year and remains a focus as the company addresses potential gross margin pressures from memory component costs.

Anton Kharitonov, expert at Traders Union, sees Cisco trading above all key moving averages, but warns the sharp uptrend is stretched. He notes overbought readings across critical oscillators signal exhaustion. Kharitonov highlights the risk of margin pressures and questions whether current AI-related optimism is sustainable. He emphasizes that neutral signals like the ADX and Awesome Oscillator undermine conviction in further upside. "Traders should exercise caution as a pullback below $96.50 would expose Cisco to a deeper correction toward prior supports."

Viktoras Karapetjanc, expert at Traders Union, highlights strong institutional demand driven by Cisco's robust AI infrastructure orders and successful Splunk integration. He believes the bullish structure remains intact as positive earnings and demand growth outweigh near-term margin concerns. Karapetjanc expects further gains, noting multiple weekly buy signals reinforce long-term opportunity. "With AI demand accelerating and the market rewarding execution, I see Cisco primed for additional upside above $102.08."

Parshwa Turakhiya, analyst, thinks the short-term setup is driven by strong buyer sentiment and clear upside momentum. He sees the price consolidating near highs as traders react to positive earnings anticipation and overbought conditions. Turakhiya points out a breakout above $102.08 could spark a quick rally, but warns that volatility may favor quick tactical trades. "The next week offers range-bound and breakout trading opportunities between $96.50 and $102.08 for agile participants."

Overbought readings and moderate momentum limit near-term upside

Momentum indicators are positive: Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both point to a bullish bias, though the ADX on D1 is neutral and suggests trend strength is moderate. The stock is overbought on several oscillators including Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI), all showing elevated levels. Bull/Bear Power (BBP) confirms buyer dominance on the day and is also in overbought territory. The Awesome Oscillator, with a neutral signal, does not contradict the current uptrend. The nearest dynamic support is the Ichimoku Kijun at $86.88, with the next resistance set by the round level at $100.

Earlier, analysts noted that Cisco was demonstrating broad-based bullish momentum following a breakout to new highs. The latest data not only supports this view but also highlights that sustained momentum and robust AI-driven growth position the stock for a potential near-term test of the $102.08 resistance, where traders should watch for either continuation toward new highs or the start of a corrective pullback.

Source of Data: CSCO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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