Key Highlights

● Cisco and Applied Materials report after Thursday's bell.

● Cisco releases fiscal first-quarter 2027 results.

● Its conference call is at 4:30 p.m. ET.

● The numbers arrive at an awkward moment for the sector.

Two very different AI suppliers will report after Thursday's bell, and their numbers arrive at an awkward moment for the sector. Cisco Systems (NASDAQ:CSCO) releases fiscal first-quarter 2027 results with a conference call at 4:30 p.m. ET, and Applied Materials (NASDAQ:AMAT) also reports after the bell.

Both companies are members of the S&P 500 and the Nasdaq-100. Both will be read as evidence on whether AI infrastructure spending remains intact while Nvidia (NASDAQ:NVDA), the sector's bellwether, is consumed by questions about its chief executive.

What each report will measure

Cisco offers a window into AI networking. The company has guided first-quarter Revenue to $18.0 billion to $18.2 billion and booked $9.3 billion of AI infrastructure orders from cloud providers in fiscal 2026. Options markets implied a move of about 8.8% in either direction after the report. Investors are likely to focus on whether AI orders keep growing, how much of that Demand is converting into revenue, and whether traditional enterprise networking is holding up.

Applied Materials, the largest US maker of chip Manufacturing equipment, sits further upstream. It is expected to report revenue of about $10.25 billion and adjusted Earnings of $4.02 a share, with options implying a move of about 7.9%. Its order commentary will reflect how foundries and memory makers are planning capacity, a signal for the entire semiconductor Supply chain into 2027.

Why the timing matters

Thursday's premarket picture shows a chip sector split in two. Nvidia was down roughly 6% to 7% after reports that its board was weighing whether to oust Jensen Huang; those reports have not been independently confirmed, and reports said no final decision had been announced after a Wednesday meeting. Lam Research (NASDAQ:LRCX), a direct Applied Materials peer, was down about 1.9% premarket, and Micron (NASDAQ:MU) about 2.7%. AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO), by contrast, were up about 3% and 2.5% to 3% respectively.

Wednesday's session had been euphoric. The PHLX Semiconductor index jumped 5.7%, with every component higher, and the S&P 500 technology sector gained 3.23%. That left little room for disappointment heading into earnings.

Broader AI demand signals have been mixed this week. CoreWeave (NASDAQ:CRWV) raised its 2026 revenue forecast and beat its own third-quarter outlook, but reports said that Microsoft (NASDAQ:MSFT) may scale back its neocloud partnerships. Cisco's cloud orders and Applied Materials' equipment outlook could help investors judge which of those signals carries more weight.

What to Watch Next on Cisco and Applied Materials

One argument is that these reports are largely insulated from Nvidia's governance questions: Cisco sells networking gear and Applied Materials sells to chipmakers broadly, so their results may reflect long-planned customer spending. Another view holds that, with sentiment fragile, even solid numbers may not be enough if guidance disappoints, especially after Wednesday's rally.

Macro factors add pressure on valuations. The 10-year Treasury Yield was near 5.00% early Thursday, the 30-year bond auction is set for 1 p.m. ET, and markets see roughly 85% to 90% odds of a December rate increase, according to CME FedWatch.

Cerebras (NASDAQ:CBRS) also reports after the bell, with a call at 5 p.m. ET, giving investors a third read on AI hardware the same evening. Earnings calendars count 456 companies reporting on Thursday in total. The bigger event follows next week, when Nvidia releases fiscal third-quarter results on Nov. 17 after the bell, with options pricing a move of about 7.8% as of Wednesday. Strong reports from Cisco and Applied Materials tonight could frame that event as a referendum on Leadership rather than demand.