Trump Threatens Hard Strike on Iran, Tech Stocks Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Should l Buy CSCO?
Source: seekingalpha
- Market Reaction: Following President Trump's threat to strike Iran “extremely hard” in the next two to three weeks, U.S. equity futures fell sharply, with S&P 500 futures down about 1.3%, Dow futures dropping nearly 1.2%, and Nasdaq 100 futures tumbling around 1.7%, indicating heightened market sensitivity to geopolitical risks.
- Oil Price Surge: Trump's address triggered a significant rise in oil prices, with Brent futures surging about 8.2% and Crude Oil futures soaring nearly 9.2%, suggesting that concerns over Middle Eastern tensions are driving energy prices higher, which could impact global economic recovery.
- Tech Stocks Under Pressure: The negative market sentiment led to declines in AI chipmakers Nvidia and AMD, each down nearly 3%, while Broadcom and Qualcomm fell about 3% and 2% respectively, reflecting weakened investor confidence in tech stocks that may influence future investment decisions.
- Broader Stock Declines: Several AI and networking-related companies, including Lumentum and Coherent, saw significant drops of about 7% and nearly 6%, while Applied Optoelectronics, Corning, and Celestica each declined around 5%, highlighting the pressure and uncertainty facing the entire sector.
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Analyst Views on CSCO
Wall Street analysts forecast CSCO stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 84.500
Low
76.00
Averages
91.30
High
100.00
Current: 84.500
Low
76.00
Averages
91.30
High
100.00
About CSCO
Cisco Systems, Inc. designs and sells a range of technologies that power the Internet. The Company is integrating its product portfolios across networking, security, collaboration, applications and cloud. The Company's segments include the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). Its Networking product category represents its core networking technologies of switching, routing, wireless, fifth generation (5G), silicon, optics solutions and compute products. Its Security product category consists of its cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of its meetings, collaboration devices, calling, contact center and platform as a service (CPaaS) offering. Its Observability product category consists of its full stack observability offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Revenue from High-Performance Computing: The high-performance computing segment accounted for 61% of TSMC's total revenue in Q1, up from 55% in the previous quarter, highlighting the company's strengthened position in the AI market, despite an 11% decline in smartphone revenue.
- ASML Delivery Expectations: ASML anticipates delivering 80 low numerical aperture EUV machines in 2027, a figure that fell short of market expectations for 90 units, leading to a 3% drop in stock price following the earnings report.
- Increased Capital Expenditure Plans: TSMC expects capital expenditures to reach $52-$56 billion in 2026, significantly up from $40.5 billion in 2025, demonstrating the company's commitment to expanding advanced chip manufacturing capacity, although the market remains cautious about achieving its targeted 30% annual growth.
See More
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See More
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See More
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- Strategic Shift Focus: The company is pivoting towards high-growth areas such as AI networking and cloud services, planning to layer a digital services platform over its fiber network to meet customer demands for rapid data processing, thereby enhancing its market competitiveness.
- Stock Price Rebound: Following a partnership announcement with AWS Interconnect, Lumen's shares spiked over 10% in afternoon trading, reflecting positive market sentiment towards its new strategy and attracting increased investor interest.
- Future Growth Expectations: By 2030, Lumen anticipates that its higher growth strategic businesses will account for 70% of total revenue, with adjusted EBITDA margins expected to exceed 30%, indicating strong growth potential in the coming years.
See More
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- Leadership Change and Future Outlook: The arrival of a new management team and refreshed board signifies Lumen's commitment to stabilizing finances while pivoting towards high-growth areas, with expectations that 70% of revenue will come from emerging businesses by 2030 and adjusted EBITDA margins will exceed 30%.
See More
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