economy
February 12, 2026
Cisco stock has worst day since 2022 as memory prices pressure margins
Cisco shares plunged 12% Thursday after the company issued lukewarm guidance as memory prices weigh on profit margins
TL;DR
- Cisco shares dropped 12%, marking their worst performance since 2022.
- Global memory shortages, driven by AI chip demand, have significantly increased component costs.
- Cisco's product gross margin declined due to higher memory costs and unfavorable product mix.
- The company plans to address rising memory prices by increasing prices, revising contracts, and negotiating terms.
- Other tech companies like Apple, Dell, and Qualcomm are also affected by memory shortages.
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