Cisco's Cloud Surge: AI-Driven Profits Soar

Cisco Systems' shares increased nearly 6% following its raised profit and revenue forecast due to strong demand in cloud infrastructure. With over $2 billion in AI-related orders for fiscal 2025, the company expects a significant revenue boost by 2026, influenced by tech giants' capital investments.

In an impressive financial performance, Cisco Systems saw a nearly 6% rise in its shares during early trading on Thursday. This surge follows the company's upward revision of its annual profit and revenue forecast, largely driven by strong demand in the cloud sector.

Key to this success is Cisco's role as a major supplier to cloud, enterprise, and telecommunications customers, with business momentum further bolstered by AI-driven infrastructure investments. As companies continue to migrate to cloud platforms, Cisco has witnessed substantial growth, with its shares gaining almost 25% this year.

CEO Chuck Robbins announced the achievement of securing over $2 billion in AI-related orders for fiscal 2025, predominantly from hyperscalers. Moreover, the company anticipates earning $3 billion from AI infrastructure by 2026. The existing and anticipated expenditure by tech giants on data centers and advanced processing contributes to the positive outlook for Cisco's high-performance networking products.

(With inputs from agencies.)