Bank of America raised its price target for Cisco Systems from $114 to $135. The bank maintained its "Buy" rating on the stock.
Resilient demand for optical networking equipment, driven by artificial intelligence infrastructure, prompted the upgrade. Analyst Tal Liani cited Cisco's strong quarterly performance as a key driver.
Cisco recently reported over $1 billion in orders for its Acacia optical components. AI-related optics demand surged nearly fourfold to approximately $950 million.
The industry transition from 400G to 800G networking provides a major tailwind. Bank of America projects the 800G optics market will expand nearly tenfold in 2026.
Cisco currently holds over 50% of this market. Ciena also received a price target hike in the sector-wide upgrade.