Cisco gets major price target increase from HSBC

What happened: On May 15, HSBC upgraded Cisco Systems Inc. (NASDAQ:CSCO) to 'Buy' from 'Hold', raising its price target to $137 from $77. This significant increase was driven by a stronger-than-expected demand pattern for AI infrastructure, with Cisco ranking among the best active stocks to buy according to hedge funds. Concurrently, Rosenblatt Securities forecasted a 30% upside for Cisco's stock due to its AI infrastructure push.

Market impact: This upgrade and bullish outlook have driven Cisco's stock momentum score up, pushing it into the top tier of Benzinga Edge rankings. The tech sector, particularly AI infrastructure players, may benefit from increased investor interest in Cisco. Valuation repricing could follow, with investors potentially re-evaluating other AI infrastructure stocks.

What to watch next: Cisco's Q3 2023 earnings, scheduled for May 17, will provide insights into the company's AI infrastructure growth. Additionally, the upcoming AI Day event on May 25 could offer more details on Cisco's AI strategy, potentially driving further momentum. Lastly, monitor any changes in AI demand patterns, as they could impact Cisco's outlook and stock performance.