Cisco notified investors that ongoing memory chip production delays are expected to reduce its fiscal Q3 bookings and revenue outlook, citing component shortages and logistical challenges. This warning marks a rare guidance cut as the company navigates tight supply and rising demand across its hardware lines.

Following Cisco’s announcement, Dell shares fell about 3%, HPE declined 4%, Arista dropped 6% and NetApp slid 5%. Traders interpreted the move as a sign that chip constraints will ripple through the broader enterprise hardware sector.

Analysts warn that prolonged memory shortages may pressure margins across networking and storage vendors, potentially delaying shipments and driving customers to explore alternative suppliers or refurbished inventory. Market participants will watch Cisco’s next update for signals on supply normalization and order backlogs.