Cisco posts quarterly gross margin below estimates

Cisco Systems posted quarterly adjusted gross margin below market estimates on Wednesday, as the networking equipment provider grapples with the fallout of a global memory price increase, sending its shares down 7% in extended trading.

The rapid build-out of artificial intelligence infrastructure by U.S. tech firms such as OpenAI, Alphabet and ‌Microsoft has absorbed ⁠much ⁠of the world’s memory chip supply, which has lifted prices as manufacturers prioritize components for higher-margin data centers over consumer devices.