Cisco Surges on AI-Driven Cloud Boom

Cisco Systems experienced a 7.22% rise in premarket trading after lifting its annual profit and revenue forecast. The company benefits from strong AI-driven infrastructure demand, with significant orders from hyperscalers. CEO Chuck Robbins announced over $2 billion in AI orders for fiscal 2025, pointing to further growth potential.

Cisco Systems shares jumped 7.22% in premarket trading on Thursday following an upbeat annual profit and revenue forecast amid strong cloud infrastructure demand.

As a pivotal supplier to cloud, enterprise, and telecom sectors, Cisco benefits from businesses accelerating cloud migrations and network upgrades. CEO Chuck Robbins disclosed over $2 billion in AI-related order commitments for fiscal 2025, primarily from hyperscalers, forecasting $3 billion in AI revenue by 2026.

A quarterly $1.3 billion worth of AI infrastructure orders from hyperscalers underscores growing investor traction. Notably, major tech companies like Alphabet, Microsoft, Meta, and Amazon are set to increase capital expenditures on data centers, providing a favorable outlook for Cisco. Fiscal 2026 revenues are projected between $60.2 billion and $61 billion.

(With inputs from agencies.)