breaking

Cisco Surges on Broadening AI Infrastructure Demand

Cisco's stock jumped 14% after the networking equipment maker crushed full-year order forecasts and raised guidance from $5 billion to $9 billion. CEO Chuck Robbins said the company is entering a "networking supercycle" driven by artificial intelligence demand. The California-based manufacturer will cut approximately 5% of its workforce to reallocate resources toward AI-focused segments, silicon, and optics. Robbins told CNBC the market's rapid pace necessitates swift reorganization, though he noted many affected employees may transition to other roles. Despite lagging hyperscaler competitors in the AI race, Cisco has recovered to surpass its dot-com era stock highs. Investors increasingly recognize the networking infrastructure required to support data center operations. The company faces challenges with forward visibility, having declined some hyperscaler projects due to market unpredictability.