Citigroup: Raises Cisco's target price to $71. Strong momentum in AI development.

Citigroup published a research report stating that Cisco's quarterly performance and outlook were slightly better than expected. The main positive factors include the continued growth of network and data center switch orders, the acceleration of cloud AI orders from $3.5 billion per quarter to $6 billion, and the beginning of AI order conversions. The bank believes that as most of Cisco's cloud AI revenue has not yet been booked and with the launch of multiple products, they believe that its future AI business opportunities will increase. The bank has slightly raised its earnings forecast for the next two years by about 2% to 3%. Due to the strong momentum in AI development, the bank has raised its target price from $68 to $71 and maintains a "buy" rating.