Cisco shares have declined on Thursday following an announcement from the company, warning of an upcoming slump in IT spending.
In a conference call with analysts, Cisco CEO John Chambers said that consumers were showing signs of "unusual uncertainty" with their IT expenditure, and were sending "mixed signals", indicating at an impending slowdown in enterprise IT spending.
Following Cisco's announcement, shares of other IT giant, most of them Cisco competitors, also fell.
According to news agency the AFP, shares of Juniper Networks fell by 6 per cent while shares of F5 Networks fell 3.8 per cent and Brocade Communications Systems declined by 4 per cent.
The market slump affected chip makers as well, with Broadcom shares declining by 3.8 per cent and Qualcomm shares fell by 2.2 per cent.
Market experts have predicted that the shares of Cisco and other IT firms will recover only after a substantial upward trend in enterprise IT spending is established.