Industry Newsmemory pricesdata centerciscosupply chain
Cisco Faces Margin Pressure From Memory Prices
7.2
Cisco Systems shares plunged as much as 12% on Thursday after the company warned that rising memory prices are squeezing margins, its worst session since 2022. Executives said strong AI chip demand, led by Nvidia, has caused a global memory shortage and higher costs; product gross margin fell to 66.4%, down 130 basis points. Cisco plans to raise prices, renegotiate contracts and adjust terms to offset the cost pressures.
Key Points
- 1Reports show Cisco shares fell as much as 12% Thursday amid margin pressure
- 2Nvidia-driven AI chip demand creates global memory shortage, driving up component costs
- 3Cisco plans to raise prices, revise contracts and negotiate terms to protect margins
Scoring Rationale
Official earnings call and supply-chain pressure drive score, limited by modest novelty and company-specific focus.
Sources
Public references used for this report.
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