Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Cisco’s AI Efforts Magnify These ETFs

BY | ETF Database
05/15/2026 | 19 VIEWS
Shares of Cisco Systems (CSCO) rallied Thursday after the networking gear maker delivered April-quarter results that beat Wall Street estimates. More importantly, the technology company boosted its 2026 guidance, due in part to strength in artificial intelligence (AI) orders.California-based Cisco now expects AI revenue of $4 billion this year, up from a prior estimate of $3 billion, and AI orders of $9 billion, up from the previously forecast $5 billion. From those forecasts, it can be inferred that the Direxion Daily CSCO 2X Bull Shares (CSCL ) and the Direxion Daily CSCO Bear 1X Shares (CSCS ) could be useful to tactical traders at various points over the remainder of 2026. CSCL attempts to deliver 200% of the daily performance of Cisco shares while the bearish CSCS seeks daily returns corresponding to the inverse of the underlying stock’s performance. So if Cisco stock falls by 1% on a given day, the inverse ETF should rise by a similar amount.Both Cisco ETFs Could Have Days in the SunCisco has clear AI ties, explaining the ebullience surrounding the April-quarter results and the increased 2026 guidance. However, some market observers believe the stock is now overvalued. That indicates that any missteps on the AI front could stoke a pullback. That scenario isn’t guaranteed to materialize, but if it does, traders could make use of CSCS. On the other hand, there’s no denying Cisco is making AI strides. Its status as a mature technology company may appeal to a broad swath of investors. That could introduce opportunity with the bullish CSCL. “Cisco’s artificial intelligence growth is impressive, as it benefits from a large available supply and a strong portfolio between classic networking and optics. We see the firm as well-positioned in hyperscale cloud and AI model builders, as well as in sovereign AI buildouts and neoclouds,” observed Morningstar’s William Kerwin. Cisco’s status as an antidote for some crucial AI bottlenecks could bolster the case for occasional CSCL deployment this year. “Networking is a critical enabler of, and bottleneck to, AI model performance. This leads to high spending on AI network infrastructure that supports growth for Cisco and its peers. We expect this trend to continue powerfully over the next five years,” added Kerwin. For traders eyeballing CSCL and CSCS, the marquee issue will be Cisco’s ability to, at a minimum, meet AI expectations. “As a conservative guide, Cisco’s AI guidance has risen each quarter this year. We model $8 billion in fiscal 2027 (versus management’s $6 billion guide), rising to $19 billion at the end of the decade, implying 79% annualized growth from fiscal 2025,” concluded Kerwin. For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

More Commentary

Navigate Fixed Income with PIMCO’s Active ETF Trio
BY | ETF Database
05/15/2026 | 61 VIEWS
Oil Volatility Shifts Focus to Upstream CCNR
BY | ETF Database
05/15/2026 | 23 VIEWS
Emerging Markets Bonds Still Look Good Compared to Treasuries
BY | ETF Database
05/15/2026 | 31 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.