Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Компания Cisco Systems, Inc. демонстрирует сильные финансовые показатели, включая высокие значения ROE, ROA и маржи, что указывает на эффективность управления и способность генерировать прибыль. Тем не менее, мультипликаторы, такие как P/S и P/B, значительно превышают медианные значения по отрасли, что может указывать на переоцененность акций. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу выше медианы отрасли. Тем не менее, стабильный рост выручки и чистой прибыли в последние годы, а также высокий уровень валовой и операционной маржи подчеркивают устойчивость компании. Дивиденды остаются стабильными, но их уровень снижается. В целом, сильные позиции в операционной деятельности и прибыльности, в сочетании с проблемами в оценке и долговой нагрузке, обуславливают необходимость корректировки целевого ценового прогноза.

Cisco Systems, Inc.

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Cisco Systems (CSCO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Cisco Systems is one of 596 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CSCO's full-year earnings has moved 3.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CSCO has returned 12.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 7.7% on average. As we can see, Cisco Systems is performing better than its sector in the calendar year.
Aehr Test Systems (AEHR) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 308.3%.
In Aehr Test Systems' case, the consensus EPS estimate for the current year increased 22.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Cisco Systems belongs to the Computer - Networking industry, a group that includes 7 individual companies and currently sits at #68 in the Zacks Industry Rank. On average, this group has gained an average of 12.5% so far this year, meaning that CSCO is performing better in terms of year-to-date returns.
In contrast, Aehr Test Systems falls under the Electronics - Measuring Instruments industry. Currently, this industry has 5 stocks and is ranked #8. Since the beginning of the year, the industry has moved +67%.
Cisco Systems and Aehr Test Systems could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are Computer and Technology Stocks Lagging Cisco Systems (CSCO) This Year?

Nokia (NYSE:NOK), a provider of mobile, fixed, and cloud network solutions globally, closed Monday at $10.76, up 2.87%. The stock moved higher after analyst upgrades, AI-focused partnership coverage, and reports highlighting institutional buying, and investors are watching how sustained AI networking demand supports future revenue and earnings growth.
The company’s trading volume reached 138.5 million shares, which is about 119% above compared with its three-month average of 63.2 million shares. Nokia went public in 1994 and has grown 716% since its IPO.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) inched up 0.12% to 7,174, while the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.20% to finish at 24,887. Within communication equipment, industry peers Cisco Systems (NASDAQ:CSCO) closed at $88.26, down 0.84%, and Motorola Solutions (NYSE:MSI) ended at $431.6, down 1.52%.
What this means for investors
Nokia shares increased following an analyst upgrade that referenced better-than-expected earnings and heightened demand related to data center connectivity, especially in optical transport and IP routing. This development indicates increased investor focus on Nokia’s position within high-capacity networks utilized by cloud providers and enterprises as artificial intelligence workloads drive greater data center traffic.
The current environment remains challenged by inconsistent spending from telecom operators and ongoing cost pressures among network equipment vendors. Nokia’s upcoming Q1 2026 earnings report will serve as a key indicator for the stock, as investors seek confirmation that demand for optical and IP networking is translating into sustained revenue growth and margin improvement.
Should you buy stock in Nokia right now?
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today, April 27: Nokia Rises After Analyst Upgrade Highlights Optical and IP Demand from Data Center Buildouts

Key Points
This may represent the year of the mega-initial public offering (IPO), headlined by Elon Musk's SpaceX, which is seeking a valuation of up to $2 trillion.
Wall Street's largest IPOs have historically fallen flat after their debuts.
Furthermore, SpaceX's price-to-sales ratio is triggering historic bubble warnings.
If you thought the dot-com era was the peak for initial public offerings (IPOs) on Wall Street, you haven't seen anything yet.
This year has an opportunity to go down as the greatest ever for mega-IPOs. Both leading artificial intelligence (AI) large language model (LLMs) developers, OpenAI and Anthropic, are tinkering with the idea of going public before the year ends. But the crème-de-la-crème of public debuts is expected to be Elon Musk's SpaceX.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
SpaceX is on the verge of becoming the world's largest-ever IPO
On April 1, SpaceX confidentially filed for an IPO, putting the wheels in motion for what should be the biggest IPO in history by a substantial sum. Various reports suggest SpaceX is seeking a $75 billion capital raise, with a market value of between $1.75 trillion and $2 trillion.
To put this figure into perspective, the largest global IPO in history is integrated oil and gas titan Saudi Aramco, which doesn't trade on U.S. exchanges. When Saudi Aramco went public in December 2019, it raised $29.4 billion. SpaceX could potentially raise close to three times this amount, depending on investor interest.
The good news is that investor enthusiasm for the SpaceX IPO should be off the charts.
For starters, it encompasses two of the largest addressable markets on the planet: space and artificial intelligence. McKinsey & Company views the global space economy as a $1.8 trillion global opportunity by 2035, while PwC analysts foresee AI creating $15.7 trillion in global economic value by 2030. Even if these figures have overshot the mark, they demonstrate how high the long-term ceiling is for these game-changing trends.
There's also the Elon Musk factor. Musk took electric-vehicle maker Tesla public in 2010 and turned it into a trillion-dollar company. Musk's lofty visions within the context of space infrastructure, AI data centers, LLMs, and social media (SpaceX also owns social media platform X) should drive sustained, supercharged sales growth.
While there are several ways to gain exposure to SpaceX prior to its upcoming IPO, history suggests a $1 trillion warning looms large for investors.
Wall Street's largest IPOs have historically flopped out of the gate
Let me preface the following discussion with a qualifying statement: the past can't predict the future with 100% accuracy. But in the case of the world's largest IPOs, history has been shown to rhyme on more than one occasion.
When large or brand-name companies file to go public, it's not uncommon for investors to be overzealous. The problem is that the luster of newly public companies quickly wears off, based on what history tells us.
Since 1999, we've witnessed five mammoth IPOs domestically, as well as the aforementioned Saudi Aramco debut overseas. Here's what the scoreboard looked like six months after their respective public debuts:
Alibaba Group: Down 9%
Visa: Up 23%
General Motors: Down 8%
United Parcel Service: Down 11%
Saudi Aramco: Down 15%
On average, the largest IPOs were down around 10% six months after their debut, which would translate into a potential loss of $200 billion in market cap for SpaceX.
But the closest apples-to-apples comparison from an innovative standpoint is Meta Platforms. Just 3.5 months after Meta's IPO, its shares had plunged by 54%. Although Meta has handily outperformed the benchmark S&P 500 (SNPINDEX: ^GSPC) over the long term, the months following its public debut were dicey, at best.
Meta's underperformance was a direct reflection of its IPO being overpriced, and of investors doubting whether the company could adjust to shifting dynamics (e.g., users shifting from desktop to mobile devices).
SpaceX brings similar concerns to the table. It's operating in highly capital-intensive industries and, with a prospective valuation of $1.75 trillion to $2 trillion, is being priced for perfection among trends we know are imperfect. If SpaceX follows a similar path to Facebook, it could shed $1 trillion in market value in the months following its debut.
SpaceX's price-to-sales ratio points to a historic bubble
However, the past performance of large-scale IPOs isn't the only historical headwind for SpaceX. One time-tested valuation metric -- the price-to-sales (P/S) ratio -- suggests that SpaceX is in trouble.
To be fair, SpaceX hasn't yet released a prospectus ahead of its IPO, so there isn't a lot of hard operational data for investors to pore over. But earlier this year, Reuters reported that SpaceX generated $15 billion to $16 billion in sales in 2025. Keep in mind that this figure doesn't include xAI or social media platform X.
If SpaceX corrals enough investor interest to reach a $2 trillion valuation, it would be trading at a trailing 12-month P/S ratio of 125! Let's put this figure into perspective.
Before the dot-com bubble burst in early 2000, several high-profile companies at the leading edge of the internet revolution peaked at P/S ratios ranging from 30 to 45, with a bit of wiggle room at each end of the spectrum. This arbitrary line in the sand helped identify dot-com-era tops for Microsoft, Cisco Systems, and Amazon.
This arbitrary valuation peak has held true through numerous subsequent next-big-thing trends. In other words, history shows that trailing 12-month P/S ratios above 30 aren't sustainable over extended periods.
Although there's a high probability that SpaceX's prospectus, including xAI and X, will lower the company's P/S ratio below 125, there's an equally good chance that it's still well above 30.
It's not uncommon for publicly traded companies at the forefront of a game-changing trend to eventually shed 50% or more of their value if their P/S ratio exceeds 30. If this bit of history proves accurate, SpaceX could lose $1 trillion (or more) of its market cap.
Though SpaceX might be the most popular IPO we've ever seen, popularity doesn't necessarily translate to profits on Wall Street.
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
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*Stock Advisor returns as of April 26, 2026.
Sean Williams has positions in Amazon, Meta Platforms, and Visa. The Motley Fool has positions in and recommends Amazon, Cisco Systems, Meta Platforms, Microsoft, Tesla, United Parcel Service, and Visa. The Motley Fool recommends Alibaba Group and General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

History Has a $1 Trillion Warning for SpaceX and Its Prospective Shareholders

The AI-quantum convergence trend is gaining significant traction, backed by a series of tangible technological progress. Recent developments from NVIDIA NVDA and Cisco Systems CSCO highlight how this intersection is beginning to take shape across compute, control and networking layers.
Cisco’s newly introduced universal quantum switch marks an important step toward solving interoperability, one of quantum computing’s most persistent challenges. The technology is designed to connect different types of quantum systems, such as superconducting and photonic platforms, over standard fiber networks while preserving quantum coherence. This effectively lays the foundation for scalable quantum networking, often referred to as the “quantum internet.”
At the same time, NVIDIA is integrating AI into quantum workflows, using machine learning to improve qubit calibration, optimize error correction and accelerate hybrid quantum-classical computing. Together, these efforts signal a broader architectural shift toward AI-orchestrated, networked quantum systems.
Long-Term Opportunity, Near-Term Constraints
Despite the growing momentum, the AI–quantum convergence remains in its initial stages. The current phase is best characterized as infrastructure buildout rather than commercialization. While enterprise use cases in drug discovery, materials science and optimization are advancing, large-scale, fault-tolerant quantum systems are still years away. According to Boston Consulting Group, the quantum computing market could reach $90 billion to $170 billion in value by 2040, with a meaningful commercial advantage emerging in the 2030s. Similarly, McKinsey & Company estimates that quantum technologies could generate up to $1.3 trillion in economic value by 2035, but notes that most near-term applications will remain in experimental or niche enterprise use cases. These projections show that while the total addressable opportunity is massive, the revenue inflection curve will likely be gradual.
From a structural standpoint, the convergence is evolving across three layers: compute (quantum processors and GPUs), control (AI-driven calibration and error correction) and networking (quantum interconnects). NVIDIA is positioning AI as the control layer, using machine learning to stabilize qubits and improve system reliability, while Cisco is advancing the networking backbone required to connect quantum machines at scale. Both NVDA and CSCO currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Pick-and-Shovel Plays: Where Near-Term Gains Lie
For investors, this opens up a broader strategic opportunity beyond just NVIDIA and Cisco Systems. The near-term winners are likely to be a wider set of pick-and-shovel players spanning the AI-quantum value chain. In semiconductors, Advanced Micro Devices AMD and Intel INTC are positioned to benefit from rising demand for high-performance compute and quantum-adjacent hardware.
Building on this hardware layer, design software leaders like Synopsys play a critical role in enabling increasingly complex chip architectures, including those tied to photonics and quantum systems.
Meanwhile, Taiwan Semiconductor Manufacturing Company TSM and ASML anchor the advanced manufacturing layer.
In networking and cloud, firms like Alphabet, Microsoft and Amazon are building the infrastructure backbone that will ultimately support hybrid AI-quantum systems.
Collectively, this layered ecosystem offers more immediate monetization pathways tied to the AI cycle, while retaining long-term optionality as quantum computing matures.
Conclusion
The AI-quantum convergence is shaping up as a long-duration platform shift with asymmetric timelines. Industry estimates are upbeat, but with meaningful commercialization skewed toward the next decade. This gap favors a barbell approach, allocating more to near-term AI infrastructure leaders benefiting from current capex cycles, while gradually building positions in quantum pure-plays during volatility, thus aligning portfolios with a phased adoption curve rather than immediate earnings visibility.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AI Meets Quantum: Best Pick-and-Shovel Stocks for a Multi-Year Shift

Broadcom AVGO has announced an expanded partnership with Alphabet’s GOOGL Google Cloud to support a new service called Cloud Network Insights. Powered by Broadcom’s AppNeta technology, the offering is being launched as a native Google Cloud service, exclusively available to its users. This solution is designed to deliver end-to-end network observability, enabling enterprises to monitor and optimize application and network performance across increasingly complex IT environments.
The new service combines Broadcom’s deep network monitoring capabilities with Google Cloud’s infrastructure scale. The solution provides a unified view of performance across multi-cloud, hybrid and SaaS environments. The need for such tools is rising as enterprises deploy AI-driven workloads and distributed applications that span multiple platforms. Traditional monitoring systems often lack visibility beyond internal networks, making it difficult to identify performance bottlenecks.
Cloud Network Insights addresses the deficiencies of traditional monitoring systems by offering full network path visibility to distinguish between application and network issues. The solution unifies monitoring of applications, agents, and networks across environments and enables faster troubleshooting through improved diagnostics and reduced resolution times. The solution also enables proactive monitoring using synthetic testing, helping organizations detect issues before they impact end users.
Broadcom is benefiting from the growing deployment of AI agents and cross-cloud architectures. Increase in network complexity is driving demand for observability tools, while AppNeta’s ability to do real-time diagnostics is a key catalyst. The expanded partnership with Alphabet increases Broadcom’s exposure to cloud infrastructure software, one of AVGO’s key strategic pillars post VMware acquisition.
AI & VMware to Drive AVGO’s Top-Line Growth
Broadcom expects AI-related revenues of $10.7 billion in the second quarter of fiscal 2026, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues. Semiconductor revenues are expected to be $14.8 billion, indicating 76% year-over-year growth.
The expanded deal with Alphabet also signifies AVGO’s increasing relevance not just as a chip supplier but as a critical software partner to hyperscalers. Infrastructure Software benefits from a strong security portfolio and the growing adoption of VMware Cloud Foundation (VCF). VCF is the essential software layer in data centers as it integrates CPUs, GPUs, storage and networking into a common high-performance private cloud environment. VCF helps enterprises to scale complex generative AI workloads effectively with the agility that hardware alone cannot provide. Broadcom believes the growth in generative and agentic AI will create the need for more VMware, which bodes well for the Infrastructure Software prospects. Segment revenue is expected to increase 9% year over year to $7.2 billion in the second quarter of fiscal 2026.
Broadcom expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. The Zacks Consensus Estimate for revenues is currently pegged at $22.04 billion, suggesting 46.9% growth from the figure reported in the year-ago quarter.
AVGO Faces Tough Competition
Broadcom is facing stiff competition in the semiconductor and infrastructure software markets from NVIDIA NVDA and Cisco CSCO, respectively.
NVIDIA is benefiting from the strong growth of AI and high-performance accelerated computing. The growing demand for Gen AI and large language models using GPUs based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. In the fourth quarter of fiscal 2026, revenues from Data Center (which accounted for 91.5% of NVDA’s revenues) jumped 75% year over year and 22% sequentially to $62.31 billion.
Cisco’s AppDynamics (now integrated with Splunk) is positioned as a full-stack application performance monitoring (APM) and business observability platform, with a strong emphasis on linking application performance to business outcomes. The service offers code-level diagnostics, real-time analytics and root-cause analysis across a distributed system. Splunk targets to add 1000 new logos in fiscal 2026.
AVGO’s Share Price Performance, Valuation & Estimates
Broadcom shares have appreciated 21.4% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 7.6%.
AVGO Stock's Price Performance
Image Source: Zacks Investment Research
The AVGO stock is trading at a premium, with a forward 12-month price/earnings of 29.08X compared with the broader sector’s 25.32X. Broadcom has a Value Score of F.
AVGO Stock’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.45 per share, up 1.5% over the past 30 days, suggesting 68% growth from fiscal 2025’s reported figure.
Broadcom Inc. Price and Consensus
Broadcom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AVGO's Google Deal Aids Infrastructure Software Growth: What's Ahead?

Key Points
Pure-play quantum computing stocks are once again on fire, with shares of IonQ, Rigetti Computing, and D-Wave Systems soaring.
However, history has proven unkind to game-changing technologies for more than three decades.
Additionally, the barrier to entry in the quantum computing space may be considerably smaller than investors realize.
Although artificial intelligence (AI) is Wall Street's largest addressable opportunity, it's not the only technological leap forward capturing the attention and capital of Wall Street and investors. The advent of quantum computing is also turning heads.
Over seven trading days (from the closing bell on April 9 through the close on April 20), shares of pure-play quantum computing stocks IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), and D-Wave Systems (NYSE: QBTS) soared by 72%, 37%, and 56%, respectively.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Quantum computing stocks have given investors several reasons to be excited, including a sky-high addressable market of up to $850 billion by 2040, according to Boston Consulting Group, as well as several early stage partnerships. For instance, Amazon has given its Braket quantum cloud service customers access to quantum computers from IonQ, Rigetti, and D-Wave. Landing a member of the "Magnificent Seven" as a client is a big deal.
But whether this short-term rally in pure-play quantum computing stocks has legs is a different story. Though growth stocks have exhibited exceptional strength in recent weeks, investors wagering on a continuation of this rally will likely be disappointed.
Three reasons the quantum computing bubble appears destined to burst
The biggest enemy for quantum computing stocks is history. Although several next-big-thing trends since the mid-1990s have been highly successful for investors over long periods, early stage bubbles have been a given.
For decades, investors have been overestimating the adoption and/or optimization of game-changing technologies. Quantum computing faces issues on both fronts: quantum computers are still very early in their commercialization, and businesses are nowhere close to optimizing this technology to boost sales and profits. History suggests a quantum computing bubble-bursting event is inevitable.
History also points to quantum computing stock valuations as unsustainable.
Prior to the dot-com bubble bursting, companies at the leading edge of the internet-driven expansion, such as Cisco Systems and Microsoft, topped out at price-to-sales (P/S) ratios of 30 to 45. This arbitrary range has commonly served as a ceiling for next-big-thing stocks and alerted investors to bubbles in the making.
As of April 20, IonQ, Rigetti Computing, and D-Wave Systems were sporting trailing 12-month P/S ratios of 106, 870, and 283, respectively. Even with high double-digit or triple-digit sales growth, these three stocks are the textbook example of bubble territory.
But history isn't the only issue for IonQ, Rigetti, and D-Wave. The barrier to entry for pure-play quantum computing stocks may be considerably smaller than investors realize.
This trio is currently losing money hand over fist and is reliant on dilutive share issuances to effectively keep the lights on. Meanwhile, most members of the Magnificent Seven have foundational operating segments, are highly profitable, and possess fortress-type balance sheets that allow them to make aggressive investments in game-changing technologies.
For example, Microsoft and Alphabet have already debuted quantum processing units since late 2024. The point being that first-mover advantages in this space may be tenuous, at best.
If you chase this rally in IonQ, Rigetti Computing, and D-Wave Systems, you'll likely regret it.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
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Sean Williams has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, IonQ, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Quantum Computing Stocks IonQ, Rigetti, and D-Wave Have Soared Up to 72% in 7 Trading Sessions -- and You'll Likely Regret Chasing This Rally

Cisco Systems CSCO is witnessing a sharp acceleration in AI-related demand, especially from hyperscalers. AI orders in second-quarter fiscal 2026 increased to $2.1 billion from $1.3 billion in first-quarter fiscal 2026, which is equivalent to the entire fiscal 2025 AI orders. The AI order for fiscal 2026 has been pegged at more than $5 billion, which is a sign of step-function acceleration instead of incremental growth.
Hyperscaler demand is the core engine of AI momentum, driven by large cloud players placing massive orders. Service provider and cloud orders grew 65% year over year, while hyperscaler demand recorded triple-digit growth. During the same quarter, new AI use cases included two wins in systems and one in optics.
A small number of customers are placing large, lumpy orders, but both the frequency and size of these orders are increasing. As a result, Cisco is becoming a preferred secondary, and in some cases primary vendor, benefiting from the need for supplier diversification and rising demand for high-performance networking.
Cisco is actively expanding its total addressable market (TAM) by deepening strategic partnerships across the AI ecosystem. CSCO’s collaboration with NVIDIA has seen engagements rise 70% sequentially, indicating accelerating joint activity in AI deployments. At the same time, its joint efforts with AMD further reinforce its position within high-performance computing environments. These partnerships are complemented by large-scale AI infrastructure initiatives, such as projects in Saudi Arabia, where Cisco is contributing to foundational AI buildouts.
Cisco’s diversified portfolio, strong hyperscaler relationships and expanding presence with emerging cloud clients provide a solid foundation for sustained growth. The company projects third-quarter fiscal 2026 revenues of $15.4-$15.6 billion and 2026 revenues of $61.2-$61.7 billion, reflecting confidence in the continuation of its AI-driven momentum and setting the stage for next-generation infrastructure leadership.
Cisco Faces Stiff Competition in the AI Space
Arista Networks ANET is rapidly outpacing Cisco in AI infrastructure with 800 Gbps Etherlink platforms, ultra-low latency and advanced features built for hyperscaler clusters. The company leverages its Linux-based EOS and CloudVision software to deliver superior programmability and real-time workload visibility, strengthening its leadership in AI networking. With AI revenues projected at $3.25 billion in 2026, gross margins between 62% and 64%, $10.7 billion in cash as on end of the fourth quarter of 2025, and a $1.6 billion buyback program for 2025, Arista Networks' prospects are bright.
Dell Technologies DELL is intensifying competition with Cisco through its “AI Factory” initiative, delivering pre-integrated systems that simplify deployment and speed AI adoption. The company shipped $9.5 billion in AI servers in the fourth quarter of fiscal 2026 and commands a $43 billion backlog, highlighting stronger enterprise traction. Leveraging its $100 billion hardware scale and supply-chain dominance, Dell demonstrates procurement strength that positions it as a formidable rival to Cisco in the AI-infrastructure race.
CSCO’s Price Performance, Valuation & Estimates
Shares of Cisco have rallied 15.7% year to date, outpacing the Zacks Computer and Technology sector’s return of 7.6% but underperforming the Zacks Computer – Networking industry’s return of 16.3%.
CSCO’s YTD Price Performance
Image Source: Zacks Investment Research
CSCO appears overvalued, as shares are trading at a forward 12-month price-to-sales ratio of 5.58, which is higher than the industry’s 5.33X. Cisco carries a Value Score of F.
CSCO’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.16 per share, up by a penny over the past 30 days and implying year-over-year growth of 9.19%.
Cisco Systems, Inc. Price and Consensus
CSCO stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cisco Cashes in on AI Order Momentum: More Upside Ahead in 2026?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500 Momentum ETF (Symbol: SPMO) where we have detected an approximate $369.8 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 116,120,000 to 119,040,000). Among the largest underlying components of SPMO, in trading today Cisco Systems Inc (Symbol: CSCO) is up about 0.4%, Newmont Corp (Symbol: NEM) is up about 2.8%, and The Charles Schwab Corporation (Symbol: SCHW) is up by about 0.5%. For a complete list of holdings, visit the SPMO Holdings page » The chart below shows the one year price performance of SPMO, versus its 200 day moving average:
Looking at the chart above, SPMO's low point in its 52 week range is $90.38 per share, with $128.51 as the 52 week high point — that compares with a last trade of $128.15. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
High Yield Dividend Stocks
CFX Historical Stock Prices
Stocks Crossing Above Their 200 Day Moving Average
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: SPMO, CSCO, NEM, SCHW

Key Points
This might be the year of the mega-IPO, led by Elon Musk's SpaceX.
SpaceX is seeking a $1.75 trillion to $2 trillion valuation, but is also being valued aggressively.
Three of SpaceX's minority investors -- one of which may be sitting on a greater than $120 billion windfall -- are artificial intelligence (AI) leaders.
If you thought the dot-com era had some impressive initial public offerings (IPOs), you haven't seen anything yet. This might be the year of the mega-IPO, with artificial intelligence (AI) large language model (LLM) developers OpenAI and Anthropic both considering going public. However, the crème-de-la-crème is the upcoming IPO of Elon Musk's SpaceX.
While investors seemingly can't wait to get their share of the SpaceX universe, there are three artificial intelligence titans you can buy right now -- Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Nvidia (NASDAQ: NVDA), and Cisco Systems (NASDAQ: CSCO) -- which have previously invested directly into one of SpaceX's numerous puzzle pieces.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Alphabet
When most investors hear the name Alphabet, they likely think of its virtual monopoly in internet search traffic through Google, its streaming platform YouTube, which is the second-most-visited social site on the planet behind Google, or perhaps its cloud infrastructure services platform, Google Cloud. The integration of generative AI and LLM solutions into Google Cloud ramped up its sales growth to 48% in the December-ended quarter.
But what you may not realize is that Alphabet is also an early investor in SpaceX. In 2015, Alphabet invested approximately $900 million in SpaceX when it was valued at roughly $12 billion. Although dilutive events modestly reduced Alphabet's ownership, regulatory filings at the end of 2025 show it still had a 6.11% stake in Musk's next trillion-dollar public company.
If SpaceX drums up enough investor interest to command a $1.75 trillion to $2 trillion valuation, Alphabet's $900 million initial investment could be worth $107 billion to $122 billion. This has the potential to be one of the largest investment windfalls we've ever witnessed on Wall Street.
Nvidia and Cisco Systems
The face of the AI revolution, Nvidia, and the largest publicly traded company during the dot-com era, Cisco Systems, are also investors in the SpaceX conglomerate -- more specifically, xAI.
Earlier this year, SpaceX acquired AI start-up xAI, which later merged with social media platform X (formerly Twitter). But before these acquisitions and mergers took place, xAI announced $20 billion of Series E funding on Jan. 6. Nvidia and Cisco were two of the strategic investors listed in this late-stage round of funding.
According to CNBC in early February, the merger of SpaceX and xAI valued the two businesses at $1 trillion and $250 billion, respectively. This means Nvidia's and Cisco's minority investments are in one of the smaller pieces of the SpaceX pie.
Nevertheless, Nvidia and Cisco Systems can increase the value of their investments in SpaceX by simply doing what they do best.
Nvidia's graphics processing units (GPUs) are the undisputed top choice by businesses in AI-accelerated data centers. In October 2024, Nvidia announced that xAI was in the process of doubling its GPU cluster, known as Colossus, to 200,000 chips. Meanwhile, Cisco is helping xAI scale its compute infrastructure.
Given how incredibly pricey SpaceX is, relative to its estimated sales, these three AI titans -- Alphabet, Nvidia, and Cisco Systems -- offer a potentially smarter way to gain exposure to this record-breaking IPO.
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Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Cisco Systems, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want SpaceX Exposure? These 3 AI Titans Have Previously Invested in What Should Be Wall Street's Largest-Ever IPO

For Immediate Releases
Chicago, IL – April 21, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Broadcom Inc. AVGO, JPMorgan Chase & Co. JPM, Cisco Systems, Inc. CSCO, Preformed Line Products Co. PLPC and CompX International Inc. CIX.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Broadcom, JPMorgan & Cisco Systems
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom Inc., JPMorgan Chase & Co. and Cisco Systems, Inc., as well as two micro-cap stocks Preformed Line Products Co. and CompX International Inc.The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Today's Featured Research Reports
Shares of Broadcom have gained +19.1% over the past six months against the Zacks Electronics - Semiconductors industry’s gain of +27.3%. The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy.
Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. Broadcom expects second-quarter fiscal 2026 AI revenues to surge 140% year over year to $10.7 billion.
AVGO’s networking portfolio is gaining from the strong demand for Tomahawk 6 products. The acquisition of VMware has benefited Infrastructure software solutions. A rich partner base is a key catalyst. However, gross margin in the fiscal second quarter is expected to be flat sequentially. High debt level is a headwind.
(You can read the full research report on Broadcom here >>>)
JPMorgan’s shares have gained +5.5% over the past six months against the Zacks Financial - Investment Bank industry’s gain of +8.6%. The company’s first-quarter 2026 results reflected solid revenue momentum amid a volatile operating environment. Its scale and diversified business mix continue to support earnings, while ongoing balance sheet growth is expected to partly offset pressure on net interest income (NII) from lower rates.
Markets revenues and investment banking (IB) fees are likely to remain strong, and healthy asset management activity should continue to support fee income. At the same time, mortgage dynamics remain mixed despite improving origination trends.
Expenses are expected to remain elevated as compensation, technology and marketing spend rise, including planned tech spending of $19.8 billion in 2026. A challenging macro backdrop raises concerns about the company’s asset quality.
(You can read the full research report on JPMorgan here >>>)
Shares of Cisco have outperformed the Zacks Computer - Networking industry over the past six months (+23.3% vs. +22.6%). The company’s business model is benefiting from strong product orders from hyperscalers, enterprises, public sector, service provider, and cloud customers. Splunk's acquisition enhances CSCO’s recurring revenue base. The buyout significantly expands Cisco’s portfolio of software-based solutions.
The launch of AI-powered Hypershield, which combines security and networking, strengthens its security portfolio. Networking sales benefits from strong demand for AI infrastructure and campus networking solutions. Product orders from service provider and cloud customers were strong driven by high double-digit order growth in hyperscalers.
Cisco expects to take AI orders in excess of $5 billion and to recognize more than $3 billion in AI infrastructure revenue from hyperscalers in fiscal 2026.However, stiffening competition is a headwind.
(You can read the full research report on Cisco here >>>)
Preformed Line Products’ shares have gained +37.8% over the past six months against the Zacks Electronics - Miscellaneous Products industry’s gain of +38.6%. This microcap company with a market capitalization of $1.56 billion offers exposure to long-cycle grid modernization and infrastructure demand, supported by a diversified portfolio across energy and communications.
Growth is driven by global utility investment, fiber deployment, and strategic expansion through acquisitions and international capacity buildouts, enhancing regional reach and product breadth. Its engineering capabilities and innovation pipeline support competitive positioning and customer retention.
However, profitability faces pressure from tariffs, input costs, and rising operating expenses, limiting margin expansion. Increased capital spending and leverage introduce execution and financial risk, while higher working capital needs may weigh on cash conversion. Overall, the story balances durable demand and diversification against cost pressures and capital intensity.
(You can read the full research report on Preformed Line Products here >>>)
Shares of CompX International have outperformed the Zacks Office Supplies industry over the past six months (+2.6% vs. -7.8%). This microcap company, with a market capitalization of $285.89 million, invests in a diversified end-market footprint that helps stabilize revenue across cycles, with strength in government, industrial, and marine demand offsetting softer commercial segments.
Margin expansion has been supported by favorable product mix and improved cost absorption, while domestic manufacturing and pricing actions provide some buffer against input cost volatility. Institutional ownership supports consistent capital allocation and a long-term orientation.
However, margin durability remains sensitive to inflationary pressures and execution on pricing. Revenue concentration in government and key customers introduces demand risk, while elevated inventory levels increase working capital intensity. Ongoing litigation adds uncertainty around future costs and capital flexibility.
(You can read the full research report on CompX International here >>>)
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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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