US Stocks Movement | Cisco drops nearly 8% before market open, AI demand boosts full-year guidance, but this quarter's gross margin guidance decreases instead of increasing

Gelonghui, February 12 — Cisco (CSCO.US), the leading chip stock, pre-market fell 7.74% to $78.92. According to reports, Cisco’s second fiscal quarter revenue increased by over 10% year-over-year, exceeding expectations. Orders for AI infrastructure from large-scale cloud providers grew “significantly accelerated” to $2.1 billion; the revenue guidance for this fiscal year was raised by more than 1% at least, and the third fiscal quarter revenue guidance was above expectations. However, the gross profit margin guidance for the third quarter declined instead of rising, decreasing by up to 3 percentage points year-over-year to 65.5%, with a larger decline compared to the second quarter.