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Cisco Surges on Hyperscaler Demand, Raises Forecast to $9B

Cisco's stock jumped 13 percent Thursday, marking its best day since 2011. The networking equipment maker exceeded full-year order guidance driven by massive infrastructure spending from major cloud providers. CEO Chuck Robbins said the company is entering a "networking supercycle" as demand accelerates for data center equipment. Cisco raised its forecast from $5 billion to $9 billion for the fiscal year. The California-based company announced a 5 percent workforce reduction as it redirects resources toward AI-focused business segments, silicon, and optics. Robbins told investors the rapid market evolution requires quick resource reallocation, though he noted many affected employees would secure other positions. Despite historically lagging larger chip makers in the competitive landscape, Cisco's stock has surpassed internet-era peaks as investors recognize the critical networking infrastructure required for hyperscaler operations.