Cisco’s Stock Price (CSCO) Threatens Breakout 2025 as $60 Looms

Cisco's stock (NASDAQ: CSCO) has been one to lean on for lessons in times of overexcitement, as a rebuild that stems back to the dot-com boom continues to take effect. With the $60 level again on the radar, and CSCO threatening a breakout into territory not seen in two decades, there may be reason to believe the narrative could be different this time around.

A look at the long term Cisco chart below tells the story better than words can in many ways, with the current trajectory indicating a breakout could be on the cards with a hold on strength above $60.

The company is a global leader in networking technology, and is now making significant strides in entering the AI sector. This move comes as part of a strategic collaboration with Nvidia, focusing on AI data center servers.

In the late 1990s, Cisco experienced remarkable stock growth, achieving gains of nearly 150% in 1998 and 130% in 1999. However, the dot-com bubble burst in March 2000, leading to a drastic market downturn. Whilst a year-to-date gain of 18% is below that of the S&P 500, the stock is certainly seeing more bullish action in recent months.

The company is now focusing on artificial intelligence (AI) through its collaboration with Nvidia. This partnership aims to develop AI data center servers, combining Cisco's expertise in Ethernet networking with Nvidia's cutting-edge GPUs. This strategic alignment seeks to provide enterprises with simplified and secure AI infrastructure solutions, capitalizing on the booming AI market and meeting growing demands.

Cisco's financial standing remains solid, with a market capitalisation of $237.41 billion. Over the last three months, the company has seen a 12.43% increase in its market value.

The company's price-earnings (P/E) ratio stands at 20.68, which is notably lower than the S&P 500 average. Analysts see some upside from current price-action, with the high target on the street of $78 a potential 30% up from the latest close.

Cisco appears to be better equipped than in the past to maintain momentum, aligning with industry leader Nvidia to enhance its offerings. As the demand for AI infrastructure continues to grow, Cisco's strategic movements could mark a significant turn in its stock performance and market significance.