
Bloomberg Intelligence Cisco Tumbles After Profit-Margin Squeeze Overshadows AI Gains
8 snips
Feb 12, 2026 Nathan Naidu, tech research analyst who studies mobile-app marketing, breaks down AppLovin and AI disruption risks. Michael Halen, restaurant and foodservice analyst, covers McDonald’s value-driven US sales and Restaurant Brands’ international mix. Jody Lurie, senior credit analyst, analyzes Hyatt’s earnings and leverage. Woo Jin Ho, hardware and networking analyst, explains DRAM-driven margin pressure hitting Cisco despite AI demand.
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Episode notes
Watch Who Passes Through Chip Costs
- Monitor which vendors absorb margin hits versus those that pass costs to customers.
- Woo Jin Ho suggests watching pricing actions from Cisco, Dell, and HPE to see margin pass-through.
Cisco Reprice Masks AI Opportunity
- Cisco's valuation had been elevated and is moving back toward historical multiples.
- Woo Jin Ho says investors are underestimating Cisco's multi-year AI opportunity despite margin pressure.
Capacity Can't Be Flipped Overnight
- Building new DRAM capacity takes years, so supply can't quickly remedy the shortage.
- Woo Jin Ho notes memory makers were hesitant after overcapacity and can't scale instantly for AI demand.

