Is AI losing steam or passing the baton? Tonight, two earnings reports will decide.
Cisco ($CSCO ) and Applied Materials ($AMAT ) report after the U.S. market closes tonight (5 a.m. Beijing time tomorrow). Both are heavyweight stocks in the AI infrastructure chain, with a combined market cap of about $680 billion.
First, just how tough are the expectations?
1. Cisco FY2027 Q1: The consensus is EPS of about $1.33 and revenue of about $18.1 billion. The company’s own guidance is revenue of $18.0–$18.2 billion and EPS of $1.32–$1.34, putting consensus almost exactly at the midpoint of its guidance, with little room to beat expectations. The company has set a target of about $7.5 billion in AI infrastructure revenue for FY2027;
2. Applied Materials FY2026 Q4: The consensus is EPS of about $4.06 and revenue of about $10.3 billion. Guidance is around $10.25 billion, plus or minus $500 million, and EPS of $4.02, plus or minus $0.20. This is another report where expectations are right in line with guidance;
3. The options market has already placed its bets: Both stocks have implied post-earnings moves of around 8.7%, so tonight’s move is bound to be amplified in one direction;
4. Sentiment ahead of the reports is far from subdued: Cisco was trading around $102 intraday on 11-11, up nearly 4%, while Applied Materials was around $400, up about 7.5%. The day before, CoreWeave shares jumped 17% after reporting better-than-expected results.
My take: Tonight isn’t about whether EPS beats by a few cents. It’s about whether the money is still flowing into AI. For Cisco, watch AI networking orders and data-center switch demand. For Applied Materials, watch wafer-fabrication equipment orders and advanced packaging demand. After last week’s data-center-related sell-off, these are the only direct read-throughs on whether demand is genuinely running into trouble or whether this is just panic. If results beat and orders are strong, the AI narrative gets another lease on life. If revenue meets expectations but guidance is cautious, volatility could still wipe out tonight’s gains. Don’t chase the first move after earnings; wait for the conference call to clarify the order picture before deciding which way things are headed.
Data as of: 2026-11-11 19:15 UTC
For informational purposes only; not investment advice.
Cisco ($CSCO ) and Applied Materials ($AMAT ) report after the U.S. market closes tonight (5 a.m. Beijing time tomorrow). Both are heavyweight stocks in the AI infrastructure chain, with a combined market cap of about $680 billion.
First, just how tough are the expectations?
1. Cisco FY2027 Q1: The consensus is EPS of about $1.33 and revenue of about $18.1 billion. The company’s own guidance is revenue of $18.0–$18.2 billion and EPS of $1.32–$1.34, putting consensus almost exactly at the midpoint of its guidance, with little room to beat expectations. The company has set a target of about $7.5 billion in AI infrastructure revenue for FY2027;
2. Applied Materials FY2026 Q4: The consensus is EPS of about $4.06 and revenue of about $10.3 billion. Guidance is around $10.25 billion, plus or minus $500 million, and EPS of $4.02, plus or minus $0.20. This is another report where expectations are right in line with guidance;
3. The options market has already placed its bets: Both stocks have implied post-earnings moves of around 8.7%, so tonight’s move is bound to be amplified in one direction;
4. Sentiment ahead of the reports is far from subdued: Cisco was trading around $102 intraday on 11-11, up nearly 4%, while Applied Materials was around $400, up about 7.5%. The day before, CoreWeave shares jumped 17% after reporting better-than-expected results.
My take: Tonight isn’t about whether EPS beats by a few cents. It’s about whether the money is still flowing into AI. For Cisco, watch AI networking orders and data-center switch demand. For Applied Materials, watch wafer-fabrication equipment orders and advanced packaging demand. After last week’s data-center-related sell-off, these are the only direct read-throughs on whether demand is genuinely running into trouble or whether this is just panic. If results beat and orders are strong, the AI narrative gets another lease on life. If revenue meets expectations but guidance is cautious, volatility could still wipe out tonight’s gains. Don’t chase the first move after earnings; wait for the conference call to clarify the order picture before deciding which way things are headed.
Data as of: 2026-11-11 19:15 UTC
For informational purposes only; not investment advice.
