Cisco and Applied Materials both beat—but the market isn't ready to celebrate
Facts: Cisco (CSCO) reported fiscal Q1 2027 results after Thursday's close, Nov. 12: revenue of $18.5 billion, up 24% year over year and above the $18.14 billion estimate (LSEG via Reuters); non-GAAP earnings of $1.40 per share vs. the $1.33 estimate. Networking surged 43%. Cisco raised its FY27 guidance to $74.8–75.8 billion from $72.2–73.4 billion, and projected AI infrastructure revenue of around $9 billion, double last year's figure. Applied Materials (AMAT) also beat: record Q4 revenue of $10.41 billion (+53%), earnings of $4.16 vs. the $4.06 estimate, and Q1 FY27 guidance of around $11.10 billion vs. the $10.89 billion estimate.
Market context: The regular session was in the red — S&P 500 7,592.40 (-0.35%), Nasdaq 25,366.09 (-0.39%), Dow 52,297.09 (-0.36%). NVDA closed down 4.34% at 166.19 following Jensen Huang's departure. The 10-year yield rose to 5.10%, WTI crude gained 2.57%, and the Russell 2000 fell 1.66%. After-hours trading was subdued — CSCO edged up 1.7% (Barron's), while AMAT was nearly flat at 380.30 (IBD) — an initial reaction, not a daily trend.
What I'm watching next: Friday's New York open, Friday at 20:30 WIB for U.S. PPI, and NVDA earnings on Tuesday, Nov. 17.
My take: The story is divided. AI infrastructure demand remains strong — these two “picks and shovels” sellers are actually raising their guidance. But the market is punishing NVDA uncertainty and the 5.10% yield, which is weighing on growth stocks. A beat alone isn't enough when sentiment is defensive; and to be fair, Cisco's Q2 guidance ($18.0–18.2 billion) is lower than the quarter it just reported.
This is my analysis, not financial advice — always DYOR.
Do you think this higher AI guidance is enough to turn chip sentiment around, or is the market still waiting for NVDA on Tuesday?
#SahamAS #ChipAI
Facts: Cisco (CSCO) reported fiscal Q1 2027 results after Thursday's close, Nov. 12: revenue of $18.5 billion, up 24% year over year and above the $18.14 billion estimate (LSEG via Reuters); non-GAAP earnings of $1.40 per share vs. the $1.33 estimate. Networking surged 43%. Cisco raised its FY27 guidance to $74.8–75.8 billion from $72.2–73.4 billion, and projected AI infrastructure revenue of around $9 billion, double last year's figure. Applied Materials (AMAT) also beat: record Q4 revenue of $10.41 billion (+53%), earnings of $4.16 vs. the $4.06 estimate, and Q1 FY27 guidance of around $11.10 billion vs. the $10.89 billion estimate.
Market context: The regular session was in the red — S&P 500 7,592.40 (-0.35%), Nasdaq 25,366.09 (-0.39%), Dow 52,297.09 (-0.36%). NVDA closed down 4.34% at 166.19 following Jensen Huang's departure. The 10-year yield rose to 5.10%, WTI crude gained 2.57%, and the Russell 2000 fell 1.66%. After-hours trading was subdued — CSCO edged up 1.7% (Barron's), while AMAT was nearly flat at 380.30 (IBD) — an initial reaction, not a daily trend.
What I'm watching next: Friday's New York open, Friday at 20:30 WIB for U.S. PPI, and NVDA earnings on Tuesday, Nov. 17.
My take: The story is divided. AI infrastructure demand remains strong — these two “picks and shovels” sellers are actually raising their guidance. But the market is punishing NVDA uncertainty and the 5.10% yield, which is weighing on growth stocks. A beat alone isn't enough when sentiment is defensive; and to be fair, Cisco's Q2 guidance ($18.0–18.2 billion) is lower than the quarter it just reported.
This is my analysis, not financial advice — always DYOR.
Do you think this higher AI guidance is enough to turn chip sentiment around, or is the market still waiting for NVDA on Tuesday?
#SahamAS #ChipAI