🎙️ podcast Analysis February 17, 2026 Bloomberg Intelligence Podcast

CSCO: DRAM Price Surge Creates 200bp Margin Hit Despite AI Revenue Growth

Networking Hardware Mobile Advertising
Tickers
2 Picks
Conviction MEDIUM
Risk Profile 1.8/10 (LOW RISK)
Horizon 18-24 months
Signal Snapshot Core Theme: Hardware Infrastructure

Cisco margins compressed, AI infrastructure overvalued

Memory shortage confirms AI buildout reality, temporary headwind

Price Increases; Capacity Expansion; AI Acceleration

Executive Summary

DRAM prices have doubled to tripled over the past quarter, creating a 200 basis point gross margin headwind for Cisco next quarter that represents a structural shift rather than temporary disruption. Wu Junho, Bloomberg's senior hardware networking analyst, confirms this affects the entire hardware ecosystem - Dell, HPE, and any DRAM-heavy server manufacturers face identical pressures. Memory manufacturers, burned by COVID overcapacity, remain hesitant to build new fabs despite AI-driven demand ...

Key Investment Opportunity

Hardware Infrastructure Reset

Memory shortage validates AI infrastructure demand while creating temporary margin compression for established players with pricing power

...and 1 more investment opportunities

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