Why Cisco Systems Stock Zoomed More Than 4% Higher Today

An analyst recommendation upgrade was the news propelling the stock of Cisco Systems (NASDAQ: CSCO) skyward on Wednesday. Investors took the bullish new rating to heart, pushing into shares of the veteran computer networking company and sending them more than 4% higher in price. That performance was much better than the 0.5% rise of the S&P 500 index that day.Well before market open, Atif Malik of Citigroup changed his Cisco stock recommendation to buy from the previous neutral. In doing so he also pulled the lever on a significant price target increase, raising his to $62 per share from the preceding $52. Malik sees vast scope for improvement in the high-demand field of artificial intelligence (AI), particularly considering that it's only responsible for around 2% of Cisco's overall revenue. As the company specializes in the ethernet switches that facilitate computer networks, it stands to benefit handsomely from the need to connect graphics processing units (GPUs) powerful enough to traffic AI functionalities to other hardware. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool