Cisco lifts its fiscal year AI infrastructure forecast from $5 billion to $9 billion amid strong demand and hyperscaler orders.
Cisco increased its fiscal year AI infrastructure forecast to $9 billion from $5 billion after exceeding guidance on hyperscaler orders. The company’s shares jumped 14%, marking their best day in over two decades, driven by surging demand for AI tools and networking equipment.
The networking giant also announced plans to cut 5% of its workforce to reallocate resources toward AI-focused segments, silicon, and optics. Cisco has lagged peers like Nvidia in the AI race but recently surpassed its internet boom highs as investors bet on its data center infrastructure.
CEO Chuck Robbins noted the AI market’s dynamic nature complicates forward bookings but expressed confidence in design wins and capital commitments. The company has opted out of some hyperscaler projects due to limited visibility.