Why Cisco's (CSCO) Acacia Orders Give It a Clearer Role in the 800G AI Optics Cycle

Cisco’s Acacia orders are positioning the company more directly within the 800G AI optics cycle, according to a June 8, 2026 note from Bank of America. The bank raised its Cisco price target to $150 from $135 and reiterated a Buy rating, citing momentum tied to the shift from 400G to 800G optical networking. Bank of America said Cisco and Ciena are benefiting as hyperscalers upgrade data-center and cloud-network infrastructure to support higher bandwidth. For Cisco’s fiscal Q3, it pointed to more than $1 billion in Acacia optical orders, with AI-related optics demand nearly quadrupling to about $950 million. The firm also expects the 800G optical market to expand nearly tenfold in 2026.