Mark Gurman

This is Bloomberg Tech.

Coming up, memory chip prices strike again, this time taking a toll on Cisco, even as AI demand surges.

We'll break it down.

And Altruist launched an AI tax planning tool.

And within hours, wealth management stocks tumbled.

The CEO of Altruist joins us to discuss.

There's a lot of pieces of consecutive red on the screens we've been putting up.

Cisco, no exception.

Down 11% on track for its biggest drop since May of 2022.

And prior to today's session, it was up 11% and had momentum.

Outlook is strong on sales for the current period.

AI demands there, but there's margin compression.

memory chip prices.

Let's get more with Bloomberg Intelligence Senior Hardware and Network Analyst Woojin Ho.

It's actually probably a good time to remind us what Cisco is and what Cisco does.

But the memory issue is factoring in to servers and right now you are leading with your React piece on the Bloomberg terminal with the memory chip issue.

What do we need to know?

Yeah, well, I think it's the key question the market is wrestling with right now.

And so when I think about it, it's really just what is on the right side of change, I think, and what is the inevitability here.

And I think what you're seeing with cloud co-work is that these agents are becoming more autonomous and they can actually execute.