Cisco stock dropped about 5% on Tuesday as Piper Sandler cut its price target for the networking equipment vendor to a share price of $125 from a prior $132.

Piper analysts cited lower price-to-earnings multiple expectations stemming from concerns that growth is peaking in the industry.

The company hit a record high in June, and the stock is up about 56% over the past 12 months as revenue has surged along with the artificial intelligence boom.

Last month, Cisco posted strong fourth-quarter earnings that beat estimates, reporting $17.25 billion in revenue that topped a $16.8 billion estimate, according to LSEG.

The company issued strong guidance for its FY2027 during its last earnings call in August, but shares sank as it was met with a lackluster reception from analysts.

While Cisco projected nearly 15% revenue growth, analysts argued sales growth would dip back into single digits. Piper analysts called the projection "conservative" in the context of greater market demand.

"We're starting a new fiscal year. We're operating in incredible markets," Robbins told CNBC's Jim Cramer last month. "But it's also a time that we're going to start the year being a little bit prudent."

Hyperscalers made up about $4 billion in revenue in fiscal year 2026, and Cisco expects that number to almost double in fiscal 2027 to $7.5 billion.